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Consider the following information: a. What is the payback perlod on each of the above projects? b. Given that you wish to use the payback

image text in transcribed Consider the following information: a. What is the payback perlod on each of the above projects? b. Given that you wish to use the payback rule with a cutoff perlod of two years, which projects would you accept? c. If you use a cutoff perlod of three years, which projects would you accept? d. If the opportunity cost of capital is 0.20 , which projects have positive NPVs? e. "If a firm uses a single cutoff perlod for all projects, It is likely to accept too many shortlived projects." True or false

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