Question: Consider the following projects: Project Cash Flows ($) C0 C1 C2 C3 C4 C5 A 2,200 2,200 0 0 0 0 B 4,400 2,200 2,200
Consider the following projects:
Project Cash Flows ($) C0 C1 C2 C3 C4 C5 A 2,200 2,200 0 0 0 0 B 4,400 2,200 2,200 5,200 2,200 2,200 C 5,500 2,200 2,200 0 2,200 2,200 If the opportunity cost of capital is 10%, which project(s) have a positive NPV? Calculate the payback period for each project. Which project(s) would a firm using the payback rule accept if the cutoff period is three years?
please answer all parts: A, B & C
Consider the following projects: 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? Complete this question by entering your answers in the tabs below. If the opportunity cost of capital is 10%, which project(s) have a positive NPV? (Do not round intermediate calculations.)
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