The project that is preferred is one with the

Practice Question 1 options:

a)Lower payback period

b)Higher payback period

c)Payback period less than 1

d)Payback period greater than 1

Under Net present value criterion, a project is approved if

Practice Question 2 options:

a)Its net present value is positive

b)Its net present value is positive and funds are unlimited

c)Its net present value is negative

d)The funds are unlimited