If the opportunity cost of capital is 10%
January 4th, 2018
Consider the following projects:Cash Flows ($)Project C0 C1 C2 C3 C4 C5A -1 ,000 +1,000 0 0 0 0B -2,000 +1,000 +1,000 +4,000 +1,000 +1,000C -3,000 +1,000 +1,000 0 +1,000 +1,000a.If the opportunity cost of capital is 10%, which projects have a positive NPV?b. Calculate the payback period for each project.c. Which project(s) would a firm using the payback rule accept if the cutoff period werethree years?