• Project Info:
  • Project A: $-1000 (Initial); $500, $500, $500 (Years 1-3)
  • Project B: $-1500 (Initial); $600, $600, $600 (Years 1-3)
  • Project C: $-2000 (Initial); $800, $800, $800 (Years 1-3)

Project	Year 0	Year 1	Year 2	Year 3
D	-2500	1000	1000	1000

a) Compute the NPVs for projects A, B, C, and D at a discount rate of 7%.

b) Which project(s) should be accepted based on NPV?

c) Calculate the payback periods for each project.

d) Determine which project(s) meet a payback period criterion of 2 years.