10:22 A stu.instructure.com Senior management asks you to recommend a decision on which project(s) to accept based on the cash flow forecasts provided. Relevant information: 1. The firm uses a 3-year cutoff when using the payback method. 2. The hurdle rate used to evaluate capital budgeting projects is 15%. The cash flows for projects A, B and C are provided below. Project A Project B Project C Year 0 -30,000 -20,000 -50,000 Year 1 0 4,000 20,000 Year 2 7,000 5,000 20,000 Year 3 20,000 6,000 20,000 Year 4 20,000 7,000 5,000 Year 5 10,000 8,000 5,000 Year 6 5,000 9,000 5.0001. Assume the projects are independent and answer the following: o Calculate the payback period for each project. 0 Which project(s) would you accept based on the payback criterion? 0 Calculate the internal rate of return (IRR) for each project. 0 Which projects would you accept based on the IRR criterion? 0 Calculate the net present value (N PV) for each project. 0 Which projects would you accept based on the NPV criterion? 2. Assume the projects are mutually exclusive and answer the following: 0 Which project(s) would you accept based on the payback criterion? 0 Which projects would you accept based on the IRR criterion? 0 Which projects would you accept based on the NPV criterion