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? 3. Payback and Accounting Rate of Return (S5.2) in Section 5.1, we listed five key features of the NPV rule. Which of these features characterize the payback rule? What about the accounting rate of return rule? 4. Payback and IRR rules ($5.2,$5.3) Respond to the following comments: A. - l like the IRR rule I con use it to rank projects without having to specify a discount rate." B. "T like the payback rule. As long as the minimum payback period is short, the rule makes sure that the company takes no borderline projects. That recuces risk." S. IRR (S5 .3) Write down the equation defining a project's internal rate of return (IRR), In practice, how is IRR calculated? 6. IRR (S5.3) Pape 141 A. Calculate the net present value of the following project for discount rates of 0,50 , and 100%