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Consider the following Information: C4 Project A B C -6,400 -1,700 -3,620 Cash Flows ($) C1 C3 2.400 2,480 1,600 1,eee 3,400 2,400 1.800 1,900
Consider the following Information: C4 Project A B C -6,400 -1,700 -3,620 Cash Flows ($) C1 C3 2.400 2,480 1,600 1,eee 3,400 2,400 1.800 1,900 4.400 1.400 a. What is the payback period on each of the above projects? (Round your answers to 2 decimal places.) Project A B Payback Period year(s) year(s) year(s) b. Given that you wish to use the payback rule with a cutoff period of two years, which projects would you accept? Project A O Project A and Project B O Project B and Project C O Project O Project A. Project B, and Project C O Project B O None O Project A and Project c. If you use a cutoff period of three years, which projects would you accept? O Project B and Project C O Project A and Project O Project A and Project B O Project O Project A. Project B. and Project C O Project B O Project A d. If the opportunity cost of capital is 10%, which projects have positive NPVS? O Project A and Project B O Project A and Project C O Project A. Project B. and Project C O Project A O Project O Project B O Project B and Project C
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