Question: cash flows project C0 C1 C2 C3 C4 C5 A -1,000 1,000 0 0 0 0 B -2,000 1,000 1,000 1,000 0 0 C -3,000

	cash flows
project	C0	C1	C2	C3	C4	C5
A	-1,000	1,000	0	0	0	0
B	-2,000	1,000	1,000	1,000	0	0
C	-3,000	1,000	1,000	0	1000	1,000

a) If the opportunity cost of capital is 11 percent, which projects have a positive NPV? b) Calculate the payback period for each project. c) Which project(s) would a firm using the payback rule accept if the cutoff period is three years?

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