Consider the following projects:

Cash Flows ($)

Project C0 C1 C02 C3 C4 C5
A -1,000 +1,000 0 0 0 0
B -2,000 +1,000 +1,000 +4,000 +1,000 +1,000
C -3,000 +1,000 +1,000 0 +1,000 +1,000

a.If the opportunity cost of capital is 10 percent, 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 is three years?
d. Calculate the discounted payback period for each project.
e. Which project(s) would a firm using the discounted payback rule accept if the cutoff period were three years?