preparing an analysis of the three projects under consideration by Chester Andrews, the company's owner. (Click the icon to view the data for the three projects.) Read the requirements. Requirements Requirement 1. Because the company's cash is limited, Andrews thinks the pa a. What are the benefits and limitations of using the payback method to choose Benefits of the payback method: A. Easy to understand and captures uncertainty about expected cash flows B. Indicates whether or not the project will earn the company's minimum re C. Utilizes the time value of money and computes each project's unique rat D. All of the above Limitations of the payback method: 'A. Fails to incorporate the time value of money and does not consider a pro B. Cannot be used for projects with unequal periodic cash flows C. Cannot be used when management's required rate of return varies from D. All of the above 1. Because the company's cash is limited, Andrews thinks the payback method should be used to choose between the capital budgeting projects. a. What are the benefits and limitations of using the payback method to choose between projects? b. Calculate the payback period for each of the three projects. Ignore income taxes. Using the payback method, which projects should Andrews choose? 2. Bickerson thinks that projects should be selected based on their NPVs. Assume all cash flows occur at the end of the year except for initial investment amounts. Calculate the NPV for each project. Ignore income taxes. 3. Which projects, if any, would you recommend funding? Briefly explain why. b. Calculate the payback period for each of the three projects. Ignore income taxes. (Round your answers to two decimal places.) Project A years Project B years Project C years Data table