Here are the expected cash flows for three projects:

			Cash Flows (Dollars)
Project	Year	0	1	2	3	4
A		-7,000	+1,500	+1,500	+4,000	0
B		-3,000	0	+3,000	+3,000	+4,000
C		-7,000	+1,500	+1,500	+4,000	+6,000

What is the payback period on each of the projects?

Project	Payback Period
A	Years
B	Years
C	Years

B) If you use a cutoff period of 2 years, which projects would you accept?

Project A

Project B

Project C

Project A and B

Project B and C

Project A and C

Projects A, B and C

None

C) If you use a cutoff period of 3 years, which projects would you accept?

Project A

Project B

Project C

Project A and B

Project B and C

Project A and C

Projects A, B and C

None

D1) If the opportunity cost of capital is 10%, calculate the NPV for projects A, B, and C. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places.)

Project	NPV
A	$
B	$
C	$

D2) Which projects have positive NPVs?

Project A

Project B

Project C

Project A and B

Project B and C

Project A and C

Projects A, B and C

None

E) "Payback gives too much weight to cash flows that occur after the cutoff date." True or false?