Question: only need to answer d1 2 + Here are the expected cash flows for three projects: Project Year: 0 - 6,500 - 2,500 -6,500 Cash

only need to answer d1 2 + Here are the expected

only need to answer d1

2 + Here are the expected cash flows for three projects: Project Year: 0 - 6,500 - 2,500 -6,500 Cash Flows (dollars) 1 - 2 3 + 1,375 + 1,375 +3,750 0 +2,500 +2,750 +1,375 + 1,375 +3,750 points +3,750 +5,750 (8 02:08:35 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. (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? Answer is not complete. Project A 3 Years Project B 2 Years a. Payback period If you use the payback rule with a cutoff period of 2 years, which projects will you accept? If you use a cutoff period of 3 years, which projects will you accept? If the opportunity cost of capital is 12%, calculate the NPV for projects A, B, and C. Project C 3 Years Project B Projects A, B, and C Which projects have positive NPVs? Project B and Project C False "Payback gives too much weight to cash flows that occur after the cutoff date." True or false

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