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 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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