Item3

12points

Time Remaining 1 hour 23 minutes 15 seconds

01:23:15

Item3

Time Remaining 1 hour 23 minutes 15 seconds

01:23:15

Consider the following information:

	Cash Flows ($)
Project	C0	C1	C2	C3	C4
A	7,000	2,200	2,200	2,600	0
B	2,300	0	1,000	4,000	5,000
C	6,600	3,600	2,500	2,500	2,000

a. What is the payback period on each of the above projects? (Round your answers to 2 decimal places.)

b. Given that you wish to use the payback rule with a cutoff period of two years, which projects would you accept?

multiple choice