1 A B C D Project A Project B Project C 2 Projected cash outflow 3 Net initial investment 4 Projected cash inflows 5 Year 1 6 Year 2 $ 3,000,000 $2,100,000 $3,000,000 $ 1,200,000 $ 1,200,000 $1,700,000 1,200,000 600,000 1,700,000 7 Year 3 1,200,000 500,000 200,000 8 Year 4 1,200,000 100,000 9 Required rate of return 10% 10% 10% Lulus Construction is analyzing its capital expenditure proposals for the purchase of equipment in the coming year. The capital budget is limited to $5,000,000 for the year. Linda Benson, staff analyst at Lulus, is preparing an analysis of the three projects under consideration by Caden Lulus, the company's owner. (Click the icon to view the data for the three projects.) Present Value of $1 table Read the requirements. Present Value of Annuity of $1 table Future Value of $1 table Future Value of Annuity of $1 table b. Calculate the payback period for each of the three projects. Ignore income taxes. (Round your answers to two decimal places.) Project A Project B Project C 2.5 years 2.6 years 1.76 years Using the payback method, which project(s) should Lulus choose? Project C Requirement 2. Calculate the NPV for each project. Ignore income taxes. (Round your answers to the nearest whole dollar. Use parentheses or a minus sign for negative net present values.) The NPV of Project A is