You are considering three independent projects: project A, project B, and project C. Given the free cash flow information:

	Project A	Project B	Project C
Initial Outlay	-1,050	-11,000	-6,000
Inflow year 1	600	4,000	2,000
Inflow year 2	300	2,000	2,000
Inflow year 3	100	2,000	2,000
Inflow year 4	300	2,000	2,000
Inflow year 5	400	2,000	2,000

calculate the payback period for each. If you require a 3-year payback before an investment can be accepted, which project(s) would be accepted?

a. What is the payback period of project A? (Round to two decimal places.)

b. If you require a 3-year payback before an investment can be accepted, you should ["reject", "select"] project A because its payback period is ["greater than", "less than"] than the maximum acceptable payback period.

c. What is the payback period of project B? (Round to two decimal places.)

d. If you require a 3-year payback before an investment can be accepted, you should ["reject", "accept"] project B because its payback period is ["greater than", "less than"] the maximum acceptable payback period.

e. What is the payback period of project C?

f. If you require a 3-year payback before an investment can be accepted, you should ["accept", "reject"] project C because its payback period is ["less than or equal to", "greater than or equal to"] to the maximum acceptable payback period.