Question: Consider the following projects: Project C3 C4 C5 A B C -3,000 -6,000 -7,500 Cash Flows ($) 1 C2 3,000 0 3,000 3,000 3,000 2,500

 Consider the following projects: Project C3 C4 C5 A B C

Consider the following projects: Project C3 C4 C5 A B C -3,000 -6,000 -7,500 Cash Flows ($) 1 C2 3,000 0 3,000 3,000 3,000 2,500 6,000 a 3,000 3,000 3,000 3,000 a. If the opportunity cost of capital is 10%, which project(s) have a positive NPV? b. Calculate the payback period for each project. c. Which project(s) would a firm using the payback rule accept if the cutoff period is three years? d. Calculate the discounted payback period for each project. e. Which project(s) would a firm using the discounted payback rule accept if the cutoff period is three years? Consider the following projects: Project C3 C4 C5 A B C -3,000 -6,000 -7,500 Cash Flows ($) 1 C2 3,000 0 3,000 3,000 3,000 2,500 6,000 a 3,000 3,000 3,000 3,000 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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