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Consider the following projects: Cs Project A B -1,600 -3,200 -4,000 Cash Flows ($) C1 C2 1,600 1,600 1,600 1,600 900 C4 0 1,600 1,600
Consider the following projects: Cs Project A B -1,600 -3,200 -4,000 Cash Flows ($) C1 C2 1,600 1,600 1,600 1,600 900 C4 0 1,600 1,600 4,600 1,600 1,600 a. If the opportunity cost of capital is 12%, 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? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E Calculate the payback period for each project. (Round your answers to 2 decimal places.) 1.00 year(s) Project A Project B Project 2.00 year(s) 4.00 X year(s) Required A Required B Required c Required D Required E Calculate the discounted payback period for each project. (Do not round intermediate calculations. Round your answers to 2 decimal places. If a project never pays back, enter "0".) 0.00 year(s) Project A Project B Project 2.10 X year(s) 4.45 X year(s)
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