Business, 20.09.2020 16:01 zaymuney3063

Here are the expected cash flows for three projects: Cash Flows (dollars)
Project Year: 0 1 2 3 4
A − 5,900 + 1,225 + 1,225 + 3,450 0
B − 1,900 0 + 1,900 + 2,450 + 3,450
C − 5,900 + 1,225 + 1,225 + 3,450 + 5,450
a. What is the payback period on each of the projects?
Project Payback period
A years
B years
C years
b. If you use a cutoff period of 2 years, which projects would you accept?
Project A
Project B
Project C
Project A and Project B
Project B and Project C
Project A and Project C
Projects A, B, and C
None
c. If you use a cutoff period of 3 years, which projects would you accept?
Project A
Project B
Project C
Project A and Project B
Project B and Project C
Project A and Project C
Projects A, B, and C
None
d-1.
If the opportunity cost of capital is 11%, calculate the NPV for projects A, B, and C. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places.)
Project NPV
A $
B $
C $
d-2. Which projects have positive NPVs?
Project A
Project B
Project C
Project A and Project B
Project B and Project C
Project A and Project C
Projects A, B, and C
None

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