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investment appraisal

This topic has 1 reply, 2 voices, and was last updated 7 years ago by John Moffat.

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February 10, 2018 at 7:09 pm #436263
alikhakar
Participant
- Topics: 186
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If I have two mutual exclusive projects to study which one a company should invest in (only one at a time), one project has a high NPV but with 3 years Payback and the other with lower NPV but with 2 years payback,the company hasnt specified any payback period limit,which one should i choose…is it the higher NPV or shorter payback..having the same risk.
February 11, 2018 at 9:51 am #436367
John Moffat
Keymaster
- Topics: 57
- Replies: 54814
It is impossible to say. There is no rule – it depends on how the company chooses to make investment decisions.
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