Sophia-Principle-Finance-Milestone (159)

Theoretically, a company would dispense with plans for a long-term project whose net present value e B) falls below zero A company is considering investing $35,000 in a project with the following anticipated net cash flows: Year 1: $10,000 Year 2: $7,000 Year 3: $6,000 Year 4: $11,000 Year 5: $15,000 Year 6: $8,000 In what year will payback occur? e A) Year 5 Select one advantage of IRR as a capital budget method. e A) It is relatively simple and easily comprehensible. What is one advantage of NPV as a capital budget method?