Answer Part B please

Fitzgibbons 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. Laura Brown, staff analyst at Fitzgibbons, is preparing an analysis of the three projects under consideration by Chris Fitzgibbons, the company's owner.

$($Click the icon to view the data for the three projects.$)$

Present Value of $$1$ table

Present Value of Annuity of $$1$ table

Future Value of $$1$ table

Future Value of Annuity of $$1$ table

Read the requirements.

Requirement $1.$ Because the company's cash is limited$,$ Fitzgibbons thinks the payback method should be used

a$.$ What are the benefits and limitations of using the payback method to choose between projects?

Benefits of the payback method:

A$.$ Indicates whether or not the project will earn the company's minimum required rate of return

B$.$ Easy to understand and captures uncertainty about expected cash flows in later years of a project

C$.$ Utilizes the time value of money and computes each project's unique rate of return

D$.$ All of the above

Limitations of the payback method:

A$.$ Cannot be used when management's required rate of return varies from one period to the next.

$\text{'}$B$.$ Fails to incorporate the time value of money and does not consider a project's cash flows after the paybad

C$.$ Cannot be used for projects with unequal periodic cash flows

D$.$ All of the above

b$.$ Calculate the payback period for each of the three projects. Ignore income taxes. $($Round your answers to two

Project A $$ years

Project B $$ years

Project C

$q,$ years

Data table

$\backslash$table$[[,$A$,$B$,$C$,$D$],[1,,$Project A$,$Project B$,$Project C$],[2,$Projected cash outflow,,,$],[3,$Net initial investment,$$3,000,000,$$$2,100,000,$$$3,000,000$