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a. What is the payback period on each of the following projects? b. Given that you wish to use the payback rule with a cutoff
a. What is the payback period on each of the following projects? b. Given that you wish to use the payback rule with a cutoff period of two years, which projects would you accept? c. If you use a cutoff period of three years, which projects would you accept? d. If the opportunity cost of capital is 10%, which projects have positive NPVs? e. "If a firm uses a single cutoff period for all projects, it is likely to accept too many shortlived projects." True or false? f. If the firm uses the discounted-payback rule, will it accept any negative-NPV projects? Will it turn down any positive-NPV projects
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