2. Payback Consider the following projects: Cash Flows ($) Co C C3 C4 C5 Project A 1,000 000 0 C 0 B -2,000000 +1,000 +4,000 +1,000 +1,000 -3,000 000 +1,000 0 1,000,000 C a If the opportunity cost of capital is 10%, which projects have a positive NPV? b. Calculate the payback period for each project c. Which project(s) 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