101 1. Calculating Payback. What is the payback period for the following set of cash flows? Year Cash Flow -$6,700 2,800 3,200 2,200 1,400 DOU. W u ll IL 15 51,00. 3. Calculating Payback. Global Toys Inc. imposes a payback cutoff of three years for its international investment projects. If the company has the following two projects available, should it accept either of them? Year Cash Flow (A) O -$60,000 23,0000 28,000 19,000 9,000 Cash Flow (B) -$105,000 21,000 26,000 29,000 260,000 or not to expand LUCULES) 3 5. Calculating IRR. A firm evaluates all of its projects by applying the IRR rule. If the required return is 11 percent, should the firm accept the following project! Year O-NM Cash Flow -$168,500 86,000 91,000 53,000 munnose the LO 4 6. Calculating NPV. For the cash flows in the previous problem, suppose the firm uses the NPV decision rule. At a required return of 9 percent, should the firm accept this project? What if the required return was 21 percent