Question: Consider the following projects: Cash Flows ($) C2 CA C5 C3 Ce Project 3,000 3.000 3,000 3,000 3,000 6. 3,000 2,500 3,000 -6,000 3,000 3,000
Consider the following projects: Cash Flows ($) C2 CA C5 C3 Ce Project 3,000 3.000 3,000 3,000 3,000 6. 3,000 2,500 3,000 -6,000 3,000 3,000 -7,500 a. If the opportunity cost of capital is 10%, 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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