ACCT3039 Individual Assignment 4 with Assessment Scoring Guide March 2020.pdf - Adobe Acrobat Reader DC X File Edit View Window Help Home Tools ACCT3039 Individu... x (? T 1 /3 + 115% do Share Answer both questions Search 'Footer' Q. 1 (18 marks) McGloire 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. Lori Alleyne, staff analyst at McGloire's, is preparing an analysis of the three projects Adobe Export PDF under consideration by Joyanne McGloire, the company's owner. Convert PDF Files to Word or Excel Online A B C D 1 Project A Project B Project C Select PDF File 2 Projected cash outflow ACCT3039 1...h 2020.pdf X 3 Net initial investment $3 000 000 $1 500 000 $4 000 000 4 Convert to 5 Projected cash inflows Microsoft Word (*.docx) 6 Year 1 $1 000 000 $ 400 000 $2 000 000 7 Year 2 1 000 000 900 000 2 000 000 V Document Language: 8 Year 3 1 000 000 800 000 200 000 English (U.S.) Change 9 Year 4 1 000 000 100 000 10 11 Required rate of return 10% 10% 10% Convert 1. Because the company's cash is limited, McGloire thinks the payback method View Converted Files should be used to choose between the capital budgeting projects. a. List two benefits and two limitations of using the payback method to choose between projects? (2 marks) b. Calculate the payback period for each of the three projects (4 marks). Convert and edit PDFs with Acrobat Pro DC Ignore income taxes. Using the payback method, which projects should McGloire choose and why? (2 mark) Start Free Trial