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Consider the following information: C4 Project B c -5, 100 -900 -4,900 Cash Flows (3) C1 C2 C3 1,100 1,100 2,900 800 2,100 3,700 1,500

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Consider the following information: C4 Project B c -5, 100 -900 -4,900 Cash Flows (3) C1 C2 C3 1,100 1,100 2,900 800 2,100 3,700 1,500 600 3,180 100 a. What is the payback period on each of the above projects? (Round your answers to 2 decimal places.) Project A Payback Period year(s) year(s) year(s) B b. Given that you wish to use the payback rule with a cutoff period of two years, which projects would you accept? O Project C O Project A and Project B O Project A and Project C O Project C O Project B O Project A O Project B and Project C O Project A, Project B, and Project c. If you use a cutoff period of three years, which projects would you accept? O Project C O Project B O Project B and Project C O Project A, Project B, and Project C O Project A O Project A and Project C Project A and Project B d. If the opportunity cost of capital is 10%, which projects have positive NPVs? O Project A O Project B and Project C O Project A and Project C O Project O Project A. Project B, and Project C O Project A and Project B O Project B and Project C e. "If a firm uses a single cutoff period for all projects, it is likely to accept too many shortlived projects." True or false? True O False f-1. If the firm uses the discounted payback rule, will it accept any negative NPV projects? Yes O No

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