Question: You are considering three independent projects: project A, project B, and project C. Given the free cash flow information in the popup window, calculate the

You are considering three independent projects: project A, project B, and project C. Given the free cash flow information in the popup window, calculate the payback period for each. If you require a 3-year payback before an investment can be accepted, which project(s) would be accepted?

Initial Outlay -950 -9,500 -5,500

Inflow year 1 500 6,000 1,000

Inflow year 2 300 2,000 1,000

Inflow year 3 100 2,000 3,000

Inflow year 4 300 2,000 3,000

Inflow year 5 400 2,000 3,000

What is the payback period of project A?

What is the payback period of project B?

What is the payback period of project C?

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