Hi,

ABC corp is trying to invest on a 5 year project, so they loaned some amount of money from the bank ( 5 years, fixed rate interest)

Now, that they have calculated the NPV which turns out negative, but the calculation using payback period method results in 3 years time.. which is good because it doesn't exceed 5 year mark.

Do you think ABC corp should take on the project ? Where can I find the reference for the negative NPV and good Payback method scenario and the action recommended ?

Cheers,

P.