Consider the following three projects. All three have an initial investment of $800,000. (Click the icon to view the investments.) Requirements 1. 2. Determine the payback period of each project. Rank the projects from most desirable to least desirable based on payback. Are there other factors that should be considered in addition to the payback period? Data table Net Cash Inflows Year Annual Project L Accumulated Project M Project N Annual Accumulated Annual Accumulated Requirement 1. Determine the payback period of each project. Rank the projects from most desirable to least desirable based on payback. Year 1 $ 100,000 $ 100,000 $ 200,000 $ 200,000 $ 400,000 $ 400,000 First, determine the payback period of each project. (Enter the payback period as a numeral.) Year 2 100,000 200,000 250,000 450,000 400,000 800,000 Payback period in Project Project L Project M Project N years Year 3 100,000 300,000 350,000 800,000 years years years Year 4 100,000 400,000 400,000 1,200,000 Year 5 100,000 500,000 500,000 1,700,000 Year 6 100,000 600,000 Now, rank the projects from most desirable to least desirable based on payback. Projects - Most to least desirable Year 7 Year 8 100,000 700,000 100,000 800,000 Print Done Requirement 2. Are there other factors that should be considered in addition to the payback period? A. No. The payback period is the only qualitative factor necessary for a comparison of investments. B. Yes. The company should consider which projects will generate cash flows after the payback period. In addition, the company should rank the projects based on the results of other evaluation methods (e.g., accounting rate of return, net present value, profitability index, and internal rate of return) and possible qualitative factors. C. No. The payback period is the only quantitative factor necessary for a comparison of investments