The WACC is 10% for all projects.

Project A

Year	Cash Flow ($)
0	-5000
1	1000
2	1000
3	3000
4	0.00

Project B

Year	Cash Flow ($)
0	-1000
1	0
2	1000
3	2000
4	3000

Project C

Year	Cash Flow ($)
0	-5000
1	1000
2	1000
3	3000
4	5000

1. Which project has the superior payback period?

a) Project C

b) Project A

c) Project B

2. If you use a cutoff period of 3 years with the discounted payback period rule, which project(s) would you accept?

a) Project A

b) Project B

c) Project C

d) All Projects

3. Which projects have positive NPVs?

1. Project A
2. Project B
3. Project C
4. Projects B and C