Here are the expected cash flows for 3 projects:

Project	years	0	1	2	3	4
a		($5,000)	$1,000	$1,000	$3,000	$0
b		($1,000)	$0	$1,000	$2,000	$3,000
c		($5,000)	$1,000	$1,000	$3,000	$5,000

Requirements:

a) What is the payback period for each project? (3pts)

b) Given that you wish to use the payback rule with a cutoff period of 2 years,

which projects would you accept? (1pt)

c) If you used a cutoff period of 3 years, which projects would you accept? (1pts)

d) If the opportunity cost of capital is 10%, what is the NPV of each project?

Round your answer to the nearest whole dollar ($). (30pts)

e) What is the IRR of Project C? Round your answer to one decimal place (e.g.,

3.2%) (5pts)

NOTE: In your Excel spreadsheet, all calculations must be included.