Here are the expected cash flows for three projects:

cash flows (dollars)

project year: 0 1 2 3 4

A -6,900 +1,475 +1,475 +3,950 0

B -2,900 0 +2,900 +2,950 +3,950

C -6,900 +1,475 +1,475 +3,950 +5,950

a.What is the payback period on each of the projects?

Project Payback period

A ----years

B ----years

C ----years

b.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.)

Year Project A Project B

0 $(220) $(220)

1 100 120

2 100 120

3 100 120

4 100

a.Calculate the NPV for both projects if the discount rate is 10%.(Do not round intermediate calculations. Round your answers to 2 decimal places.)

Project NPV

A

B