ProjectCash Flows $($$$)$C$0$C$0$C$1$C$1$C$2$C$2$C$3$C$3$C$4$C$4$A$5,0001,0001,0003,0000$B$1,00001,0002,0003,000$C$5,0001,0001,0003,0005,000$

What is the payback period on each of the above projects?

Given that you wish to use the payback rule with a cutoff period of two years, which projects would you accept?

If you use a cutoff period of three years, which projects would you accept?

If the opportunity cost of capital is $0\mathrm{.}21,$ which projects have positive NPVs$?$

$$If a firm uses a single cutoff period for all projects, it is likely to accept too many shortlived projects.$$ True or false?