one case, 5 questions

Consider the following projects: CA Project B -2,400 -4,800 -6,000 Cash Flows ($) C1 C2 2,400 2,400 2,400 2,400 2,100 C3 0 5,400 0 C5 0 2,400 2,400 2,400 2,400 a. If the opportunity cost of capital is 12%, which project(s) have a positive NPV? b. Calculate the payback period for each project. c. Which project(s) would a firm using the payback rule accept if the cutoff period is three years? d. Calculate the discounted payback period for each project. e. Which project(s) would a firm using the discounted payback rule accept if the cutoff period is three years? Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E Calculate the payback period for each project. (Round your answers to 2 decimal places. Project A Project B Project year(s) year(s) year(s) Reiner Required A Required B Required C Required D Required E If the opportunity cost of capital is 10%, which project(s) have a positive NPV? Positive NPV project(s) Required A Required B Required C Required D Required E Which project(s) would a firm using the payback rule accept if the cutoff period is three years? Project(s) accepted Required A Required B Required C Required D Required E Calculate the discounted payback period for each project. (Do not round intermediate calculations. Round your answers to 2 decimal places. If a project never pays back, enter "0".). Project A Project B Project year(s) year(s) year(s) Required A Required B Required C Required D Required E Which project(s) would a firm using the discounted payback rule accept if the cutoff period is three years? Project(s) accepted