Problem 8-29 NPV Payback and (LO 1, L04) Here are the expected cash flows for three projects: 4 Project Year: A B C - 5,200 1,200 - 5,200 Cash Flows (dollars) 1 2 3 + 1,050 + 1,050 + 3,100 + 1,200 + 2,100 + 1,050 + 1,050 + 3,100 + 3,100 + 5, 100 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 9%, 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? Project A Years Project B Years Project C Years a. Payback period 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 9%, calculate the NPV for projects A, B, and C. 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