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.
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investment appraisal
8y ago#1It is impossible to say. There is no rule - it depends on how the company chooses to make investment decisions.
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