Question: 29. Payhack and NPV. Here are the expected cash flows for three projects: ( LOS-A) a. What is the payback period on each of the

 29. Payhack and NPV. Here are the expected cash flows for

29. Payhack and NPV. Here are the expected cash flows for three projects: ( LOS-A) a. What is the payback period on each of the projects? b. If you use the payback rule with a cutoff period of two years, which projects will you accept? c. If you use a cutoff period of three years, which projects will you accept? d. If the opportunity cost of capital is 10%, which projects have positive NPVs? c. "Payback gives too much weight to cash flows that occur after the cutoff date." True or false

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