Q3 A. (20 Marks) a) What is the pay-back period on each of the following projects? Project A B Time 0 -5,000 -1,000 -5,000 1 +1,000 0 +1,000 Cash Flow dollars 2 3 +1,000 +3,000 +1,000 +2,000 +1,000 +3,000 4 0 +3,000 +5,000 b) Given that you wish to use the payback rule with a cut off period of 2 years, which projects would you accept? c) If you use a cut off period of 3 years, which projects would you accept? d) If the opportunity cost of capital is 10%, which projects have positive NPVs? e) "Payback gives too much weight to cash flows that occur after the cut-off date" - True or False. Please explain why