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2015•International journal of research in finance and marketingRequires access

Comparison Between Net Present Value and Internal Rate of Return

Balaram Bora

Open publisher page 18 citations

Abstract

Decisions in capital investment will have major impact on the future well-being of the firm. Normally NPV and IRR measurements to evaluate projects often results in the same findings. However, there are a number of projects for which using IRR is not as effective as using NPV to discount cash flows. This study objective is to analyze conflicting areas between NPV and IRR.

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What this paper is about

Decisions in capital investment will have major impact on the future well-being of the firm. Normally NPV and IRR measurements to evaluate projects often results in the same findings. However, there are a number of projects for which using IRR is not as effective as using NPV to discount cash flows. This study objective is to analyze conflicting areas between NPV and IRR.

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OpenAlex reports 18 citations for this work. Citation counts describe recorded attention and do not establish research quality.

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Available abstract

Decisions in capital investment will have major impact on the future well-being of the firm. Normally NPV and IRR measurements to evaluate projects often results in the same findings. However, there are a number of projects for which using IRR is not as effective as using NPV to discount cash flows. This study objective is to analyze conflicting areas between NPV and IRR.

Key concepts: Internal rate of return, Net present value, Cash flow, Capital budgeting, Present value, Modified internal rate of return, Rate of return, Mathematics

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