Project A B C -2,600 -5,200 -6,500 2,600 2,600 2,600 Cash Flows ($) C₂ Project A Project B Project C 0 2,600 2,500 Required A Required B Required C year(s) year(s) year(s) 0 5,600 0 a. If the opportunity cost of capital is 10%, which project(s) have a positive NPV? b. Calculate the payback period for each project. c. Which project(s) would a firm using the payback rule accept if the cutoff period is three years? Calculate the payback period for each project. Note: Round your answers to 2 decimal places. Complete this question by entering your answers in the tabs below. 0 2,600 2,600 C < Required A 0 2,600 2,600 Required C >
Project A B C -2,600 -5,200 -6,500 2,600 2,600 2,600 Cash Flows ($) C₂ Project A Project B Project C 0 2,600 2,500 Required A Required B Required C year(s) year(s) year(s) 0 5,600 0 a. If the opportunity cost of capital is 10%, which project(s) 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? Calculate the payback period for each project. Note: Round your answers to 2 decimal places. Complete this question by entering your answers in the tabs below. 0 2,600 2,600 C < Required A 0 2,600 2,600 Required C >
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Transcribed Image Text:ook
rint
rences
Project
A
B
C
Co
-2,600
-5,200
-6,500
C₁
2,600
2,600
2,600
Cash Flows ($)
(8
C₂
0
Project A
Project B
Project C
2,600
2,500
Required A Required B Required C
0
5,600
0
year(s)
year(s)
year(s)
Calculate the payback period for each project.
Note: Round your answers to 2 decimal places.
C4
0
a. If the opportunity cost of capital is 10%, which project(s) 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?
< Required A
2,600
2,600
Complete this question by entering your answers in the tabs below.
C
0
2,600
2,600
Required C >
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