• Consider standard projects. If the firm uses the discounted payback rule, will it accept any negative NPV projects? Will it turn down positive NPV projects? Explain.

Cash Flows ($)
C1	C2	C3	C4
1000	1000	3000	0
0	1000	2000	3000
1000	1000	3000	5000

2. If the cost of capital is 10%, which projects have a positive NPV?
4. "If a firm uses a single cutoff period for all projects, it is likely to accept too many short-lived projects." True or False?
6.