Consider the following projects:

	Cash Flows, $
Project	C0	C1	C2	C3	C4	C5
A	3,000	+3,000	0	0	0	0
B	6,000	+3,000	+3,000	+6,000	+3,000	+3,000
C	7,500	+3,000	+3,000	0	+3,000	+3,000

a-1.	If the opportunity cost of capital is 10%, what is the NPV for each project? (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places.)

Project	NPV
A	$
B	$
C	$

a-2.

Which project(s) have a positive NPV?

	Project B and Project C
	Project C
	Project B
	Project A
	Project A and Project B
	Project A and Project C

b.	Calculate the payback period for each project. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Project	Payback Period
A	year(s)
B	year(s)
C	year(s)

c.

Which project(s) would a firm using the payback rule accept if the cutoff period were three years?

	Project A and Project B
	Project C
	Project A and Project C
	Project A
	Project B and Project C
	Project B

d.	Calculate the discounted payback period for each project. (Enter 0 if the payback period cannot be calculated. Do not round intermediate calculations. Round your answers to 2 decimal places.)

Project	Discounted Payback Period
A	year(s)
B	year(s)
C	year(s)

e.

Which project(s) would a firm using the discounted payback rule accept if the cutoff period were three years?

	Project A and Project B
	Project B and Project C
	Project B
	Project C
	Project A and Project C
	Project A