What is the payback period? How is it calculated? What weaknesses are commonly associated with the use of the payback period to evaluate a proposed investment? How does discounted payback partially address these weaknesses?

How is a projects net present value (NPV) calculated? What decision rule do managers follow when they use NPV to accept or reject investment ideas? How is an investments NPV related to the firms market value?

Explain the similarities and differences between NPV, PI, and EVA.