Reference no: EM133110351

Consider the following projects:

Cash Flows ($)
Project	C0	C1	C2	C3	C4	C5
A	-1,500	1,500	0	0	0	0
B	-3,000	1,500	1,500	4,500	1,500	1,500
C	-3,750	1,500	900	0	1,500	1,500

a. If the opportunity cost of capital is 11%, which project(s) have a positive NPV?

Positive NPV Project(s):______________________

b. Calculate the payback period for each project.(Round your answers to 2 decimal places.)

Project A		Year (s)
Project B		Year (s)
Project C		Year (s)

c. Which project(s) would a firm using the payback rule accept if the cutoff period is three years?

Project(s) Accepted:___________________________

d. Calculate the discounted payback period for each project.(Do not round intermediate calculations. Round your answers to 2 decimal places. If a project never pays back, enter "0".)

Project A		Year (s)
Project B		Year (s)
Project C		Year (s)

e. Which project(s) would a firm using the discounted payback rule accept if the cutoff period is three years?

Project(s) Accepted:________________________