Question: Question 1 Cash Flows ($) a. What is the payback period on each of the following projects? b. Given that you wish to use the

$Question 1 Cash Flows (\$) a. What is the payback period$

Question 1 Cash Flows (\$) a. What is the payback period on each of the following projects? b. Given that you wish to use the payback rule with a cutoff period of two years, which projects would you accept? c. If you use a cutoff period of three years, which projects would you accept? d. If the cost of capital is 10%, which projects have a positive NPV? e. "If a firm uses a single cutoff period for all projects, it is likely to accept too many short-lived projects." True or False? f. Consider standard projects. If the firm uses the discounted payback rule, will it accept any negative NPV projects? Will it turn down positive NPV projects? Explain

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