Question: Here are the expected cash flows for three projects: a. What is the payback period on each of the projects? b. If you use the
Here are the expected cash flows for three projects: a. What is the payback period on each of the projects? b. If you use the payback rule with a cutoff period of 2 years, which projects will you accept? c. If you use a cutoff period of 3 years, which projects will you accept? d.1. If the opportunity cost of capital is 9%, caiculate the NPV for projects A, B, and C, Note: Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places. d-2. Which projects have positive NPVs? e. "Payback gives too much weight to cash flows that occur after the cutoff date." True or false
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