2003•Annals of the University of Petroşani. EconomicsRequires access
Investment project evaluation – NPV and IRR criteria
Mihaela Iloiu, Diana Csiminga
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Abstract
This paper is a about two rules used in capital investment decision-making. NVP and IRR incorporate the time value of money using a discount factor based in the firm’s relevant interest rate or cost of capital. Decision-makers clearly prefer IRR to NPV although NPV technique offers more practical advice for managers them IRR