9.)

Consider the following information:

	Cash Flows ($)
Project	C0	C1	C2	C3	C4
A	6,300	2,300	2,300	1,700	0
B	1,600	0	1,000	3,300	4,300
C	3,700	2,300	1,000	1,800	1,300

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

PROJECT	PAYBACK PERIOD
A	___YEARS
B	___ YEARS
C	___YEARS

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

multiple choice 1

• Project B

• Project A

• None

• Project A, Project B, and Project C

• Project A and Project B

• Project B and Project C

• Project C

• Project A and Project C

c. If you use a cutoff period of three years, which projects would you accept? multiple choice 2

• Project B and Project C

• Project A and Project B

• Project B

• Project A

• Project A and Project C

• Project C

• Project A, Project B, and Project C