onsider the following projects:

Cash Flows $($$$)$

Project C$0$ C$1$ C$2$ C$3$ C$4$ C$5$

A $2,2002,2000000$

B $4,4002,2002,2005,2002,2002,200$

C $5,5002,2002,20002,2002,200$

If the opportunity cost of capital is $10\%,$ which project$($s$)$ have a positive NPV$?$

Calculate the payback period for each project.

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

Calculate the discounted payback period for each project.

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