23. Payback and NP a. What is the payback period on each of the following projects? Net Present Value and Other Investment Criteria 371 Cash Flows, Dellars Project Time: 1 5,000 1,000 000 3,000 1,000 1,000 2,000 3,000 5.000 1.000 1.000 3000 +5,000 b. Given that you wish to use the payback rule with a cutoff period of 2 years, which proj- ects would you accept e. If you use a cutoff period of 3 years, which projects would you accept? d. If the opportunity cost of capital is 10 percent, which projects have positive NPVs? "Payback gives too much weight to cash flows that occur after the cutoff date." True or alse