A project with a cash outlay now is followed by positive expected cash flows in the future and a payback period less than its economic life Is its net present value positive or negative Explain Now suppose that the discounted payback period is less than the useful life of the project Is its net pre...

If the payback period is less than the economic life of the project its net present value can ...

A project with a cash outlay now is followed by positive expected cash flows in the future

Question:

A project with a cash outlay now is followed by positive expected cash flows in the future and a less than its economic life. Is its positive or negative? Explain.
Now suppose that the discounted is less than the useful life of the project. Is its positive or negative? Explain.
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... 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,...