Here are the expected cash flows for three projects:

	Cash Flows (dollars)
Project	Year:	0			1			2			3			4
A			5,100		+	1,025		+	1,025		+	3,050			0
B			1,100			0		+	1,100		+	2,050		+	3,050
C			5,100		+	1,025		+	1,025		+	3,050		+	5,050

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 11%, 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