Question
hi, help with question C, d-1, and D-2. Here are expected cash flows for three projects: Cash Flows dollars) Project Year: 0 1 2 3
hi, help with question C, d-1, and D-2.
Here are expected cash flows for three projects:
Cash Flows dollars)
Project Year: 0 1 2 3 4
A 6,100 +1,275 +1,275 +3,550 0
B 2,100 0 +2,100 +2,550 +3,550
C 6,100 +1,275 +1,275 +3,550 +5,550
a.What is payback period on each of the projects?
A: 3
B: 2
C: 3
b.If you use 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 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 . Round your answers to 2 decimal places.)
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
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