1.If the opportunity cost of capital is 10%, which project(s) have a positive NPV?

Required A is Positive NPV project(s):

2. 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)

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

Project(s) accepted:

4. 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)

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

Project(s) accepted:

Problem 5-2 Payback Consider the following projects: Project Cash FIONS (8) C2 C -2.900 -6.800 -7.260 2.800 2.800 2.800 2.800 2.500 6.800 0 0 2.800 2.800 2.800 2.800 a. If the opportunity cost of capital is 9%, which project(s) have a positive NPV? b. Calculate the payback period for each project c. Which projects would a firm using the payback rule accept if the cutoff period is three years? d. Calculate the discounted payback period for each project. e. Which project(s) would a firm using the discounted payback rule accept if the cutoff period is three years? Complete this question by entering your answers in the tabs below. Required A Required B Required Required D Required E If the opportunity cost of capital is 10%, which project(s) have a positive NPV? Positive NPV projects) Red A Required B > Problem 5-2 Payback Consider the following projects: Project Cash FIONS (8) C2 C -2.900 -6.800 -7.260 2.800 2.800 2.800 2.800 2.500 6.800 0 0 2.800 2.800 2.800 2.800 a. If the opportunity cost of capital is 9%, which project(s) have a positive NPV? b. Calculate the payback period for each project c. Which projects would a firm using the payback rule accept if the cutoff period is three years? d. Calculate the discounted payback period for each project. e. Which project(s) would a firm using the discounted payback rule accept if the cutoff period is three years? Complete this question by entering your answers in the tabs below. Required A Required B Required Required D Required E If the opportunity cost of capital is 10%, which project(s) have a positive NPV? Positive NPV projects) Red A Required B >