If the Net Present Value (NPV) is greater than zero , then the payback period of the project using the discounted cash flow (DCF) method must be a equal to zero b less than the useful life of the project c greater than the usseful life of the project d equal to the useful life of the project

The Answer is in the image, click to view ...

Question: If the Net Present Value (NPV) is greater than zero , then the payback period of the project using the discounted cash flow (DCF) method

If the Net Present Value (NPV) is greater than zero, then the payback period of the project using the discounted cash flow (DCF) method must be:

equal to zero

less than the "useful life" of the project

greater than the usseful life of the project

equal to the useful life of the project

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Answer the following: 1. A project under consideration costs $100,000, has a five-year life, and has no salvage value. Depreciation is straight-line to zero. The required return is 10 percent, and...

1. A project under consideration costs $100,000, has a five-year life, and has no salvage value. Depreciation is straight-line to zero. The required return is 10 percent, and the tax rate is 30...

I am having a hard time calculating problems 3 through 5. I would like help understanding the equation that way I will be able to solve. Chapter 9 Homework Each homework assignment is intended to...

1. Risk free rate is 3%. Equity risk premium is 5%. Beta is 2. Using the Capital Asset Pricing Model, compute the cost of equity capital. 2. Earnings Before Interest and Taxes is 200. Depreciation is...

1. Risk free rate is 3%. Equity risk premium is 5 Beta is 2. Using the Capital Asset Pricing Model, compute the cost of equity capital. 2. Earnings Before Interest and Taxes is 200. Depreciation is...

INTRODUCTION This exercise is comprised of four parts. Part 1 covers automated routines macros in Excel to rearrange and transform data, Part 2 covers Pivot Table: Data Sets Cross-Tabulation and...

1) The less certain a cash flow, the ________ the risk, and the ________ the present value of the cash flow. A) lower; higher B) lower; lower C) higher; lower D) higher; higher 2) ________ of all...

Worldwide Medical Devices (WMD) manufactures medical diagnostic equipment at several locations across Europe. WMD has traditionally manufactured large high-quality medical equipment for use in...

CREATE A SCHEDULE IN EXCEL THAT CALCULATES NPV, IRR, and PP for all three projects. Daily Company is evaluating three projects Project A would require an investment of $420,000 have a salvage value...

This exercise is comprised of four parts. Part 1 covers automated routines macros in Excel to rearrange and transform data, Part 2 covers Pivot Table: Data Sets Cross-Tabulation and Querying in Excel...

In this lab, you will: Part 1. Identify the questions. Part 2. Load the data. Part 3. Perform a regression analysis in Excel. This Lab relies on information and work from Chapter 2 Lab 2-5. Refer to...

Predict the differences in the outcome of raw milk that has been incubated for 48 hours versus pasteurized milk that has been incubated for the same length of time.

Fill in the Blank Question Fill in the blank question. The rate that borrowers are willing to pay and lenders are willing to accept for a particular bond at its risk level is called the bond's rate

Let x be the length of a shortest path from h to f . Modify the graph by dividing all weights by 2 . For example, the weight of the edge ( h , a ) will be 2 2 = 1 , etc. Let y be the length of a...