Question: #14 Consider the following projects: Project Cash Flow C2 C3 C4 C5 -1,000 -2,000 -3,000 Ci +1,000 +1,000 +1.000 +1,000 +1,000 +4,000 0 +1,000 +1,000

#14 Consider the following projects: Project Cash Flow C2 C3 C4

#14 Consider the following projects: Project Cash Flow C2 C3 C4 C5 -1,000 -2,000 -3,000 Ci +1,000 +1,000 +1.000 +1,000 +1,000 +4,000 0 +1,000 +1,000 +1,000 +1,000 (a) If the discount rate is 10%, which projects have a positive NPV? (b) Calculate the payback period for each project. (c) Which project(s) would a firm using the payback rule accept if the cutoff period were 2 years

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