Problem 5-1 Payback Consider the following information: C4 Project A B -5,300 -700 -5,200 Cash Flows ($) 1 C C 1,300 1,300 2,700 600 2,300 3,400 1,700 800 3,300 300 a. What is the payback period on each of the above projects? (Round your answers to 2 decimal places.) Project A B Payback Period year(s) year(s) year(s) b. Given that you wish to use the payback rule with a cutoff period of two years, which projects would you accept? None O Project A and Project C O Project B and Project C O Project A, Project B, and Project C O Project A and Project B O Project B O Project A O Project C c. If you use a cutoff period of three years, which projects would you accept? Project A, Project B, and Project C O Project A and Project C O Project A and Project B O Project A O Project B and Project C O Project B O Project d. If the opportunity cost of capital is 10%, which projects have positive NPVS? Project A, Project B, and Project C O Project A and Project C O Project B O Project A O Project A and Project B O Project C O Project B and Project C e. "If a firm uses a single cutoff period for all projects, it is likely to accept too many shortlived projects." True or false? True O False f-1. If the firm uses the discounted-payback rule, will it accept any negative-NPV projects? O Yes Na f-2. Will it turn down any positive-NPV projects? Yes