A particular investment proposal has a payback period that exceeds the investments expected life The investment has no salvage value Will this proposals net present value be positive or negative Explain your answer ...

If an investment with no salvage value has a payback period that exceeds its estimated l ...

A particular investment proposal has a payback period that exceeds the investments expected life. The investment has

Question:

A particular investment proposal has a that exceeds the investment’s expected life. The investment has no . Will this proposal’s be positive or negative? Explain your answer.

Net Present Value
What is NPV? The net present value is an important tool for capital budgeting decision to assess that an investment in a project is worthwhile or not? The net present value of a project is calculated before taking up the investment decision at... Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important... 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,...