Problem 8-29 NPV Payback and (LO 1, LO4) Here are the expected cash flows for three projects: Cash Flows (dollars) Project A Year: 0 1 2 3 4 6,300 + 1,325 + 1,325 + 3,650 0 B C 2,300 6,300 0 + 2,300 + 2,650 + 3,650 + 1,325 + 1,325 + 3,650 + 5,650 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 11%, 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? Check my work Project A a. Payback period 3 Years Project B 2 Years Project C 3 Years b. If you use the payback rule with a cutoff period of 2 years, which projects will you accept? Project B C. If you use a cutoff period of 3 years, which projects will you accept? Projects A, B, and C d-1. If the opportunity cost of capital is 11%, calculate the NPV for projects A, B, and C, < Prev 2 of 5 Next >