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Consider the following projects: Cash Flows ($) Project Co -1,000 C C C3 C4 C5 1,000 0 0 -2,000 1,000 1,000. 4,000 1,000 1,000
Consider the following projects: Cash Flows ($) Project Co -1,000 C C C3 C4 C5 1,000 0 0 -2,000 1,000 1,000. 4,000 1,000 1,000 -3,000 1,000 1,000 1,000 1,000 a. If the opportunity cost of capital is 10%, which project(s) have a positive NPV? b. Calculate the payback period for each project. c. Which project(s) would a firm using the payback rule accept if the cutoff period is three years? d. Calculate the discounted payback period for each project. e. Which project(s) would a firm using the discounted payback rule accept if the cutoff period is three years? Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E If the opportunity cost of capital is 10%, which project(s) have a positive NPV? Positive NPV project(s) Required A Required B >
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