onsider three projects with cash flows given below:

If the appropriate discount rate is 10%, what is the NPV of each project?

Compute the payback period of each project. Which project should be accepted if the threshold payback period is 3 years?

Compute the discounted payback period of each project. Which project should be accepted if the threshold payback period is 3 years?

Project Cash Flow Information

Project Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

A -$1,000 $1,000 $0 $0 $0 $0

B -$2,000 $1,000 $1,000 $4,000 $1,000 $1,000

C -$3,000 $1,000 $1,000 $0 $1,000 $1,000

Exercise 1 Consider the projects with cash below the appropria discounts 10 PV 2. Compute the pack of ach pro Wich should become who puta period a year? 3.Conte the died payback period of each project which he be led to put plod 3 you? Project Cash Flow Information Project Year Year 1 Year 2 Year A $1.000 Years 51 000 50 50 50 0 B 52.600 51.000 $1.000 5.000 BE -53.000 51000 51.000 STOP