Question: Consider these three projects: Year 0 2 3 4 Project A -$3000 $2500 $1500 $750 $500 Project B -$7000 $0 $2000 $4000 $6000 Project C

Consider these three projects: Year 0 2 3 4
Consider these three projects: Year 0 2 3 4 Project A -$3000 $2500 $1500 $750 $500 Project B -$7000 $0 $2000 $4000 $6000 Project C -$6750 $3500 $3000 $2500 $2000 1. Find the payback period for each project. 2. If the firm uses a maximum payback period of three years, which project(s) should be accepted? Two years? 3. Which project(s) would be accepted using the NPV rule and a required return of 15 percent? Which one is best

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