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

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 12%, calculate 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 glves too much weight to cash flows that occur ofter the cutoff date." True or false

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