I will rate, thank you.

Part 1:

Consider projects Alpha and Beta:

Cash Flows ($)
Project	C0	C1	C2	IRR (%)
Alpha	389,000	242,000	288,999	23
Beta	199,000	131,500	167,000	30

The opportunity cost of capital is 8%. Suppose you can undertake Alpha or Beta, but not both. Use the IRR rule to make the choice.

Which project did you choose?

	Alpha
	Beta

Part 2:

Consider the following projects:

Cash Flows ($)
Project	C0	C1	C2	C3	C4	C5
A	2,500	2,500	0	0	0	0
B	5,000	2,500	2,500	5,500	2,500	2,500
C	6,250	2,500	2,500	0	2,500	2,500

a. If the opportunity cost of capital is 9%, which project(s) have a positive NPV?

Which are Positive NPV project(s)?

	Project A
	Project B
	Project C
	Projects A and B
	Projects A and C
	Projects B and C
	Projects A, B, and C
	No project

b. Calculate the payback period for each project: (Round your answers to 2 decimal places. If a project never pays back, enter "0".)

Project A	year(s)
Project B	year(s)
Project C	year(s)

c. Which project(s) would a firm using the payback rule accept if the cutoff period were three years?

Project(s) accepted

(Click to select)

Project A

Project B

Project C

Projects A and B

Projects A and C

Projects B and C

Projects A, B, and C

No project

d. Calculate the discounted payback for each project. (Do not round intermediate calculations. Round your answers to 2 decimal places. If a project never pays back, enter "0".)

Project A	year(s)
Project B	year(s)
Project C	year(s)

e. Which project(s) would a firm using the discounted payback rule accept if the cutoff period were three years?

Project(s) accepted

(Click to select)

Project A

Project B

Project C

Projects A and B

Projects A and C

Projects B and C

Projects A, B, and C

No project