You are considering an investment with the following cash flows. Your required return is 8%, you generally require a payback of 3 years and a discounted payback of 4 years.
If your objective is to maximize your wealth, should you take this investment?
A . Yes, because the payback is 2.5 years.
B . Yes, because the discounted payback is less than 4 years.
C . Yes, because both the payback and the discounted payback are less than 2 years
D . No, because the NPV is negative
Answer: D