CHAPTER 7NET PRESENT VALUE AND OTHER INVESTMENT CRITERIAAnswers to Concepts Review and Critical Thinking Questions1.A payback period less than the projects life means that the NPV is positive for a zero discount rate, but nothing more definitive can be said. For discount rates greater than zero, the payback period will still be less than the projects life, but the NPV may be positive, zero, or negative, depending on whether the discount rate is less than, equal to, or greater than
