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Consider the following projects: A: c 0 = - 1 0 0 0 , c 1 = 1 0 0 0 , c 2 =

Consider the following projects:
A: c0=-1000,c1=1000,c2=0,c3=0,c4=0,c5=0
B: c0=-2000,c1=1000,c2=1000,c3=4000, c4=1000,c5=1000
C: c0=-3000,c1=1000,c2=1000,c3=0,c4=1000,c5=1000
1. If opportunity cost of capital is 10 percent, which projects have a positive NPV?
2. Calculate the payback period for each project
3. Which project(s) would a firm using the payback rule accept if the cutoff period were 3 years?

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