Can the payback rule reject projects that have positive NPV? Can it accept projects that have negative

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Can the payback rule reject projects that have positive NPV? Can it accept projects that have negative NPV?

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Corporate Finance

ISBN: 9780132992473

3rd Edition

Authors: Jonathan Berk, Peter DeMarzo

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Question Posted: Mar 07, 2024 01:01 AM

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Can the payback rule reject projects that have positive NPV? Can it accept projects that have negative

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Yes the payback rule has limitations and can lead to Rejecting projects with positive NPV This can happen when a project with a positive NPV has a lon...View the full answer

Corporate Finance

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