Here are the expected cash flows for three projects:

Project	Cash Flows (dollars)
	Year 0	Year 1	Year 2	Year 3	Year 4
A	5,000	+1,000	+1,000	+3,000	0
B	1,000	0	+1,000	+2,000	+3,000
C	5,000	+1,000	+1,000	+3,000	+5,000

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

b. If you use the payback rule with a cutoff period of 2 years, which projects will you accept?

c. If you use a cutoff period of 3 years, which projects will you accept?

d-1. If the opportunity cost of capital is 10%, calculate the NPV for projects A, B, and C.

Note: Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places.

d-2. Which projects have positive NPVs?

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