Consider the following projects: Cash Flows, $

Proj. C0. C1. C2. C3. C4. C5 A. 2,400 +2,400 0 0 0 0

B 4,800 +2,400 +2,400 +5,400 +2,400 +2,400 C 6,000 +2,400 +2,400 0 +2,400 +2,400

a-1.

If the opportunity cost of capital is 12%, what is the NPV for each project?(Negative amounts should be indicated by a minus sign. Do now round intermediate calculations. Round your answers to 2 decimal places.)

ProjectNPV A. $? B. $? C. $?

a-2. Which project(s) have a positive NPV? Project B Project A and Project C Project C Project A and Project B Project A Project B and Project C

b.

Calculate the payback period for each project.(Do not round intermediate calculations. Round your answer to 2 decimal places.)

Project. Payback Period A year(s) ? B year(s) ? C year(s) ?

c.Which project(s) would a firm using the payback rule accept if the cutoff period were three years?

Project B Project A Project A and Project C Project C Project B and Project C Project A and Project B

d.

Calculate the discounted payback period for each project.(Enter 0 if the payback period cannot be calculated. Do not round intermediate calculations. Round your answers to 2 decimal places.)

Project Discounted PaybackPeriod

A year(s)? B year(s)? C year(s) ?

e.

Which project(s) would a firm using the discounted payback rule accept if the cutoff period were three years?

Project A and Project B Project A and Project C Project C Project A Project B Project B and Project C