If you look at the answer, it comments that it’s ok to accept a project even if NPV < 0, because it could be due to short payback period of the project. This seems to be in contradiction to what Schweser says, since we should always pick projects that have positive NPV. Am I reading this question right? Thanks!
the difference to note is that the company is not using NPV as the project selection criterion. This is based on Payback period. And in that case the Project NPV may be < 0.
Hi cpk123. Can you please post ur email address? need clarifications on some areas please.
haha…cp how did I miss this thread?
Totally missed that part about not using NPV method. Thanks!
osei Wrote: ------------------------------------------------------- > Hi cpk123. Can you please post ur email address? > need clarifications on some areas please. Pretty sure that is what this board is for, no need to hog cpk all to yourself!