Here are the expected cash flows for three projects: Cash Flows (dollars) Project Year: 0 1 2 3 4 A 6,500 + 1,375 + 1,375 + 3,750 0 B 2,500 0 + 2,500 + 2,750 + 3,750 C 6,500 + 1,375 + 1,375 + 3,750 + 5,750

a. What is the payback period on each of the projects? Project Payback period A years B years C years

b. If you use a cutoff period of 2 years, which projects would you accept? Project A Project B Project C Project A and Project B Project B and Project C Project A and Project C Projects A, B, and C None

c. If you use a cutoff period of 3 years, which projects would you accept? Project A Project B Project C Project A and Project B Project B and Project C Project A and Project C Projects A, B, and C None

d-1. If the opportunity cost of capital is 12%, calculate the NPV for projects A, B, and C. (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 $

d-2. Which projects have positive NPVs? Project A Project B Project C Project A and Project B Project B and Project C Project A and Project C Projects A, B, and C None

e. "Payback gives too much weight to cash flows that occur after the cutoff date." True or false? True False