Here are the expected cash flows for three projects:

	Cash Flows (dollars)
Project	Year:	0		1		2		3		4
A			6,600		+	1,400		+	1,400		+	3,800			0
B			2,600			0		+	2,600		+	2,800		+	3,800
C			6,600		+	1,400		+	1,400		+	3,800		+	5,800

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 10%, 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