Use the following to answer questions 9-10: Year 3 $100 $125 Project Year 0 $200 $300 Year 1 $100 $175 Year 2 $100 $125 Page 2 9. Based on the payback rule, which of the following is false? A) With a payback cutoff of 1.5 years, both projects are unacceptable. B) With a payback cutoff of 3 years, both projects are acceptable. C) With a payback cutoff of 1 year, neither project is acceptable. D) Since both projects pay back, the NPV of both must be positive. E) You would be indifferent between the two projects. 10. If the discount rate is 14% and the firm has limited funds, which of the following is true? A) The PI of project A is less than 1.0. B) The PI of project B is less than 1.0. C) Based on the PI rule, project A is preferable. D) Both projects would be rejected based on the PI rule. E) The project with the smaller initial investment always has the higher PI