Problem 1-Capital Budgeting using Payback Analysis: Payback is a tool that is frequently used to screen capital budget request. Payback is a tool that is frequently used to screen capital budget request. Net Present Value is another tool used tool to screen capital budget request. Use the same information to determine which are qualified projects and the preferred project under NPV. Andrews 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 Bart, staff analyst at Andrews, is preparing an analysis of the three projects under consideration by Corey Andrews, the company's owner. Project A Project B Project C Initial inves $3,000,000 $1,500,000 $4,000,000 Annual cash saved by operations: Year 1 1,000,000 400,000 2,000,000 Year 2 1,000,000 900,000 2,000,000 Year 3 1,000,000 800,000 200,000 Year 4 1,000,000 0 100,000 Note-Andrews Construction requires a return of 10% Required 1: Yr. 1 Yr. 2 Yr. 3 Yr. 4 a. Determine each proposal's payback. Show your answer in a table format. b. Identify the best proposal baased on Payback analysis. a. 1,000,000 400,000 2,000,000 1,000,000 900,000 2,000,000 1,000,000 800,000 200,000 1,000,000 0 100,000 Payback b. Best-Project Problem 2-Capital Budgeting using Net Present Value Analysis: Required 2: Yr. 1 Yr. 2 Yr. 3 Yr. 4 a. Determine each proposal's net Present Value. Show your answer in a table format. b. Identify the best proposal baased on NPV analysis. a. Rate from table 1,000,000 400,000 2,000,000 1,000,000 900,000 2,000,000 1,000,000 800,000 200,000 1,000,000 0 100,000 PV Investment 3,000,000 1,500,000 NPV b. Best- 4,000,000