Question: Payback Period and Net Present Value If a project with conventional cash flows has a payback period less than the projects life, can you definitively

  1. Payback Period and Net Present Value If a project with conventional cash flows has a payback period less than the projects life, can you definitively state the algebraic sign of the NPV? Why or why not? If you know that the discounted payback period is less than the projects life, what can you say about the NPV? Explain.
  2. Net Present Value Suppose a project has conventional cash flows and a positive NPV. What do you know about its payback? Its discounted payback? Its profitability index? Its IRR? Explain.
  3. What are ways to maximize shareholder value through long-term and short-term financial planning and the implementation of various strategies?

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