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Consider the following information: Project B -6,500 -1,800 -5, 100 Cash Flows (5) 61 C2 2,500 2,500 1,500 @ 1,000 3,500 2,589 1,100 2,000 CA

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Consider the following information: Project B -6,500 -1,800 -5, 100 Cash Flows (5) 61 C2 2,500 2,500 1,500 @ 1,000 3,500 2,589 1,100 2,000 CA 0 4,500 1,500 a. What is the payback period on each of the above projects? (Round your answers to 2 decimal places.) Project 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 A and Project C Project A, Project B, and Project C O None O Project B and Project C O Project A O Project O Project B O Project A and Project B c. If you use a cutoff period of three years, which projects would you accept? O Project A, Project B, and Project O Project A and Project B O Project O Project A O Project B and Project C O Project B O Project A and Project C d. If the opportunity cost of capital is 10%, which projects have positive NPVs? Project B O Project A O Project B and Project C O Project A, Project B, and Project C O Project A and Project C O Project A and Project B O Project 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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