Assignments Due:

Post DQ Initial Response

Post $2$ DQ Peer Responses

Submit Professional Assignment $1$

NVP Projects Discussion Question $-$ CLO $1,$ CLO $2,$ CLO $4,$ CLO $5$

a$.$ What is the payback period on each of the above projects?

b$.$ Given that you wish to use the payback rule with a cutoff period of two years,

which projects would you accept? Why?

c$.$ If you use a cutoff period of three years, which projects would you accept? Why?

d$.$ If the opportunity cost of capital is $10\%,$ which projects have positive NPVs$?$ How

do you know?

e$."$If a firm uses a single cutoff period for all projects, it is likely to accept too many

short$-$lived projects." Is this statement true or false? How do you know?

f$.$ If the firm uses the discounted$-$payback rule, will it accept any negative NPV

projects? Will it turn down any positive NPV projects? How do you know?