If a project 's payback period is less than the maximum payback period that the firm will accept, does this mean that the project 's NPV will also be positive ...

No To illust ra t e c onsid e r a n inv e stm e nt th a t c os t s 100000 a nd h a s ca sh f lo ...

If a project's payback period is less than the maximum payback period that the firm will accept,

Question:

If a project's is less than the maximum that the firm will accept, does this mean that the project's NPV will also be positive?
Payback Period
Payback period method is a traditional method/ approach of capital budgeting. It is the simple and widely used quantitative method of Investment evaluation. Payback period is typically used to evaluate projects or investments before undergoing them,...