The$$ Bar$-$None Manufacturing Co$.$ manufactures fence panels used in cattle feed lots throughout the Midwest. $$ Bar$-$None's management is considering three investment projects for next year but$$ doesn't want to make any investment that requires more than three years to recover the$$ firm's initial

investment. The cash flows for the three projects$($Project A$,$ Project$$ B$,$ and Project$$ C$)$ are as$$ follows

Project A

Project B

Project C

$0$

$$$$(1,100)$

$$$$(9,000)$

$$$$(6,500)$

$1$

$530$

$5,500$

$1,800$

$2$

$400$

$3,500$

$1,800$

$3$

$170$

$3,500$

$3,000$

$4$

$90$

$3,500$

$3,000$

$5$

$490$

$3,500$

a$.$Given$$ Bar$-$None's three$-$year payback$$ period, which of the projects will qualify for$$ acceptance?

b$.$Rank the three projects using their payback period. Which project looks the best using this$$ criterion? Do you agree with this$$ ranking? Why or why$$ not?

c$.$If$$ Bar$-$None uses a discount rate of $9\mathrm{.}9$ percent to analyze$$ projects, what is the discounted payback period for each of the three$$ projects? If the firm still maintains its$$ three$-$year payback policy for the discounted$$ payback, which projects should the firm$$ undertake?