You will be evaluating three projects for Hasbro Toys. Hasbro's cost of capital or discount rate...

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Finance

You will be evaluating three projects for Hasbro Toys. Hasbro'scost of capital or discount rate is 8%.

The first project (A) will cost $25,000 initially. The projectwill then return cash flows of $10,000 for 5 years.

The second project (B) will cost $50,000 initially. The projectwill then return cash flows of $30,000 for the next 2 years and$10,000 for 2 years after that.

The third project (C) will cost $30,000 initially. The projectwill then return cash flows of $11,000 for 3 years.

Q1: What is Project A's Payback Period?

Q2: What is Project B's Payback Period?

Q3: What is Project C's Payback Period?

Q2

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