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Which of the following is true for a 5-year project with a 3-year payback period? The net...

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Finance

Which of the following is true for a 5-year project with a3-year payback period?

The net present value is negative.

The net present value is zero.

Initial screening reveals this to be an acceptable project.

The net present value is positive.

Answer & Explanation Solved by verified expert
3.8 Ratings (621 Votes)
For this let us understand the basic Terms given in this question 1 PAY BACK PERIOD Payback period is the time required to recover the initial cost of an investment It is the number of years it    See Answer
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Which of the following is true for a 5-year project with a3-year payback period?The net present value is negative.The net present value is zero.Initial screening reveals this to be an acceptable project.The net present value is positive.

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