he$$ Bar$-$None Manufacturing Co$.$ manufactures fence panels used in cattle feed lots throughout the Midwest. $$ Bar$-$None's management is considering three investment projects for next year but$$ doesn't want to make any investment that requires more than three years to recover the$$ firm's initial

investment. The cash flows for the three projects$($Project A$,$ Project$$ B$,$ and Project$$ C$)$ are as$$ follows:$$ LOADING... $.$

a$.$Given$$ Bar$-$None's three$-$year payback$$ period, which of the projects will qualify for$$ acceptance?

b$.$Rank the three projects using their payback period. Which project looks the best using this$$ criterion? Do you agree with this$$ ranking? Why or why$$ not?

c$.$If$$ Bar$-$None uses a discount rate of $9\mathrm{.}1$ percent to analyze$$ projects, what is the discounted payback period for each of the three$$ projects? If the firm still maintains its$$ three$-$year payback policy for

the discounted$$ payback, which projects should the firm$$ undertake?

Year Project A Project B Project C

$0$ $$(950)$ $$(9,000)$ $$(6,000)$

$1$ $$700$ $$4,500$ $$1,800$

$2$ $$225$ $$3,500$ $$1,800$

$3$ $$170$ $$3,500$ $$3,500$

$4$ $$90$ $$3,500$ $$3,500$

$5$ $$480$ $$3,500$ $$3,500$