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Problem 5-2 Payback Consider the following projects: Cash Flows ($) Project Co C2 Cs -2,100 A 2,100 2,100 0 0 0 B -4,200 -5,250 2,100

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Problem 5-2 Payback Consider the following projects: Cash Flows ($) Project Co C2 Cs -2,100 A 2,100 2,100 0 0 0 B -4,200 -5,250 2,100 5,100 2,100 2,100 2,100 2,100 C 2,100 2,100 0 a. If the opportunity cost of capital is 9%, which project(s) have a positive NPV? b. Calculate the payback period for each project. c. Which project(s) would a firm using the payback rule accept if the cutoff period is three years? d. Calculate the discounted payback period for each project. e. Which project(s) would a firm using the discounted payback rule accept if the cutoff period is three years? Complete this question by entering your answers in the tabs below. Required E Required B Required D Required A Required C

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