Project C0 C1 C2 C3 C4 A -5000 +1000 +1000 +3000 0 B -1000 0 +1000 +2000 +3000 C -5000 +1000 +1000 +3000 +5000 1. What is the payback period on each of the above projects? 2. Given that you wish to use the payback rule with a cutoff period of two years, which projects would you accept? Why? 3. If you use a cutoff period of three years, which projects would you accept? Why? 4. If the opportunity cost of capital is 10%, which projects have positive NPVs? How do you know? 5. If a firm uses a single cutoff period for all projects, it is likely to accept too many short-lived projects. Is this statement true or false? How do you know? 6. If the firm uses the discounted-payback rule, will it accept any negative NPV projects? Will it turn down any positive NPV projects? How do you know