Corporate Finance
Corporate Finance
3rd Edition
ISBN: 9780132992473
Author: Jonathan Berk, Peter DeMarzo
Publisher: Prentice Hall
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Chapter 7.3, Problem 1CC

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

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Calculate the payback period for an investment with initial outlay $30,000 and annual cash flows $8,000.
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Capital Budgeting Introduction & Calculations Step-by-Step -PV, FV, NPV, IRR, Payback, Simple R of R; Author: Accounting Step by Step;https://www.youtube.com/watch?v=hyBw-NnAkHY;License: Standard Youtube License