Question
A-2. What is the payback period on each project? (Do not round intermediate calculations. Round your answers to the nearest whole number) Project A: ______
A-2. What is the payback period on each project? (Do not round intermediate calculations. Round your answers to the nearest whole number)
Project A: ______ YEARS
Project B: ____ YEARS
Project C: _____ YEARS
A-2. What is the discounted payback period on each project? (Do not round intermediate calculations. Round your answers to 2 decimal places. If any of the projects does not pay back on a discounted basis, enter zero ("0").)
Project A: ______ YEARS
Project B: ____ YEARS
Project C: _____ YEARS
B. Given that you wish to use payback rule with a cutoff period of 2 years, which projects would you accept?
C. If you use a cutoff period of 3 years with the discounted payback rule, which projects would you accept?
D. Which projects have postive NPVs?
A firm is considering the following projects. Its opportunity cost of capital is 11%. a-1. What is the payback period on each project? (Do not round intermediate calculations. Round your answers to the nearest whole number.)
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