(Solution) - Here are the expected cash flows for three projects a What -(2025 Original AI-Free Solution)

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Here are the expected cash flows for three projects:

a. What is the payback period on each of the projects?
b. Given that you wish to use the payback rule with a cutoff period of 2 years, which projects would you accept?
c. If you use a cutoff 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 cutoff date." True or false?