20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

investment appraisal

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

Viewing 2 posts - 1 through 2 (of 2 total)

Author
Posts
February 10, 2018 at 7:09 pm #436263
alikhakar
Participant
- Topics: 187
- Replies: 79
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: 54695
It is impossible to say. There is no rule – it depends on how the company chooses to make investment decisions.
Author
Posts

Viewing 2 posts - 1 through 2 (of 2 total)

The topic ‘investment appraisal’ is closed to new replies.