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* I'm struggling with d. for B & C. Please help. Thanks. Consider the following projects: Cash Flows, $ Project C 0 C 1 C

* I'm struggling with d. for B & C. Please help. Thanks.

Consider the following projects:

Cash Flows, $
Project C0 C1 C2 C3 C4 C5
A 1,900 +1,900 0 0 0 0
B 3,800 +1,900 +1,900 +4,900 +1,900 +1,900
C 4,750 +1,900 +1,900 0 +1,900 +1,900

a-1.

If the opportunity cost of capital is 11%, what is the NPV for each project? (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places.)

Project NPV
A $ -188
B $ 5,415.78
C $ 822.94

a-2. Which project(s) have a positive NPV?
Project A and Project C
Project B and Project C
Project B
Project A
Project C
Project A and Project B

b.

Calculate the payback period for each project. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Project Payback Period
A year(s) 1
B year(s) 2
C year(s) 3.5

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

d.

Calculate the discounted payback period for each project. (Enter 0 if the payback period cannot be calculated. Do not round intermediate calculations. Round your answers to 2 decimal places.)

Project Discounted Payback Period
A year(s) 0
B year(s) ?
C year(s) ?

e.

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

Project B
Project A and Project C
Project B and Project C
Project C
Project A and Project B
Project A

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