Question: A project with a cash outlay now is followed by

A project with a cash outlay now is followed by positive expected cash flows in the future and a payback period less than its economic life. Is its net present value positive or negative? Explain.
Now suppose that the discounted payback period is less than the useful life of the project. Is its net present value positive or negative? Explain.

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  • CreatedMarch 27, 2015
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