Problem 1: Consider the following projects: Cash Flows Project C0 C1 C2 C3 C4 C5 A -1.500 +1500 0 0 0 0 B -2.000 +1.000 +1.000 +4.000 +1.000 +1000 C -3.000 +1.000 +1.000 0 +1.000 +1000 1.

If the opportunity cost of capital is 12%, what is the NPV of each project?

2. Calculate the payback period for each project ?

3. Which project(s) would a firm using the payback rule accept if the cutoff period were 3 years ?

4. Calculate the discounted payback period for each project ?

5. Which project(s) would a firm using the disounted payback rule accept if the cutoff period were 3 years ?