Consider the following information:

	Cash Flows, $
Project	C 0	C 1	C 2	C 3	C 4
A	–6,900	+2,100	+2,100	+3,100	0
B	–2,200	0	+1,000	+3,900	+4,900
C	–6,500	+3,500	+3,500	+4,900	+6,900

a. What is the payback period on each of the above projects? (Round your answers to 2 decimal places.)

Project	Payback Period
A	year(s)
B	year(s)
C	year(s)

b. Given that you wish to use the payback rule with a cutoff period of two years, which projects would you accept?

Project B and Project C

Project A and Project C

Project A and Project B

Project B

Project C

Project A, Project B and Project C

Project A

c. If you use a cutoff period of three years, which projects would you accept?

Project A, Project B and Project C

Project A and Project C

Project A

Project C

Project A and Project B

Project B and Project C

Project B

d. If the opportunity cost of capital is 8%, which projects have positive NPVs?

Project A, Project B and Project C

Project B and Project C

Project C

Project A and Project C

Project A

Project B

Project A and Project B