Part D-1 MUST have instructions followed to get the correct answer: DO NOT ROUND INTERMEDIATE COMPUTATIONS AND ROUND TO 2 DECIMAL POINTS

Here are the expected cash flows for three projects:

	Cash Flows (dollars)
Project	Year:	0			1			2			3			4
A			5,300		+	1,075		+	1,075		+	3,150			0
B			1,300			0		+	1,300		+	2,150		+	3,150
C			5,300		+	1,075		+	1,075		+	3,150		+	5,150

a.	What is the payback period on each of the projects?

Project	Payback period
A	years
B	years
C	years

b.

If you use a 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 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

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 calculations. Round your answers to 2 decimal places.)

Project	NPV
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