al ezto.mheducation.com Question 3-W eekly assignment 8- Numeric Questions i Saved Help Save & Exit Submit Check my work 3 Problem - NPV & Payback In the table below, you can find the expected cash flows of three different projects: its Project. Year! : B eBook 0 0 -6,900 -2,900 -6,900 Cash Flows (dollars) 1 1 2 3 + 1,475 +1,475 + 3,950 0 + 2,900 + 2,950 +1,475 + 1,475 + 3,950 4 0 + 3,950 + 5,950 Print ferences a. Calculate the payback period separately for each project. b. Which projects do you accept according to the payback rule, assuming a cutoff period of 2 years? c. Which projects do you accept according to the payback rule, assuming a cutoff period of 3 years? d-1. Calculate NPVs separately for each project assuming that the opportunity cost of capital is 12%. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places.) d-2. Select the projects that have positive NPVs. e. Is the following statement true or false? "Payback gives too much weight to cash flows that occur after the cutoff date." Project B Project C Project A Years Years Years a. Payback period b. Which projects do you accept according to the payback rule, assuming a cutoff period of 2 years? G. Which projects do you accept according to the payback rule, assuming a cutoff period of 3 years? d-1. Calculate NPVs separately for each project assuming that the opportunity cost of capital is 12% d-2. Which projects have positive NPVs? "Payback gives too much weight to cash flows that occur after the cutoff date." True or false? e. w 8