Consider the following information: Project B C Co -5,000 -1,000 -5,000 Required A C Project A B C Cash Flows ($) C Required B 1,000 0 1,000 1,000 1,000 1,000 C3 a. What is the payback period on each of the above projects? b. Given that you wish to use the payback rule with a cutoff period of two years, which projects would you accept? c. If you use a cutoff period of three years, which projects would you accept? d. If the opportunity cost of capital is 0.05, which projects have positive NPVs? e. "If a firm uses a single cutoff period for all projects, it is likely to accept too many shortlived projects." True or false? 3,000 2,000 3,000 Complete this question by entering your answers in the tabs below. Payback Period year(s) year(s) year(s) Required C Required D What is the payback period on each of the above projects? Note: Round your answers to 2 decimal places. C 0 3,000 5,000 Required E

Consider the following information: a. What is the payback period on each of the above projects? b. Given that you wish to use the payback rule with a cutoff period of two years, which projects would you accept? c. If you use a cutoff period of three years, which projects would you accept? d. If the opportunity cost of capital is 0.05 , which projects have positive NPVs? e. "If a firm uses a single cutoff period for all projects, it is likely to accept too many shortlived projects." True or false? Complete this question by entering your answers in the tabs below. What is the payback period on each of the above projects? Note: Round your answers to 2 decimal places