Problem 8-24 Payback, Discounted Payback, and NPV (LO1, 3) m. A firm is considering the following projects. Its opportunity cost of capital is 10%. Time: 4 0.25/0.31 points awarded 1 +1,000 Project A B 0 -5,000 -1,000 -5,000 Cash Flows, $ 2 3 +1,000 +3,000 +1,000 +2,000 +1,000 +3,000 +3,000 +5,000 Scored +1,000 a-1. What is the payback period on each project? (Do not round intermediate calculations. Round your answers to the nearest whole number.) Payback Period Project A Project B Project C 3 years 2 years 3 years a-2. What is the discounted payback period on each project? (Do not round intermediate calculations. Round your answers to 2 decimal places. If any of the projects does not pay back on a discounted basis, enter zero ("O").) b. Given that you wish to use the payback rule with a cutoff period of 2 years, which projects would you accept? 3 Project B 0.25/0.31 points awarded Scored c. If you use a cutoff period of 3 years with the discounted payback rule, which projects would you accept? Projects B,C x d. Which projects have positive NPVs? Projects A,B,C x e. "Payback gives too much weight to cash flows that occur after the cutoff date." True or false