Question: Consider the following projects: C3 C4 Project A B -1,300 -2,600 -3,250 Cash Flows ($) C1 C2 1,300 1,300 1,300 1,300 1,100 0 4,300 0

 Consider the following projects: C3 C4 Project A B -1,300 -2,600

Consider the following projects: C3 C4 Project A B -1,300 -2,600 -3,250 Cash Flows ($) C1 C2 1,300 1,300 1,300 1,300 1,100 0 4,300 0 0 1,300 1,300 C5 0 1,300 1,300 a. If the opportunity cost of capital is 9%, which project(s) 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? d. Calculate the discounted payback period for each project. e. Which project(s) would a firm using the discounted payback rule accept if the cutoff period is three years

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