Unlocking Financial Success: New Criteria for Project Evaluation Revealed
The article discusses how to evaluate projects using financial indicators like Net Present Value (NPV) and Internal Rate of Return (IRR). NPV calculates the profit earned from a project, while IRR shows the maximum rate of return. These indicators help make effective decisions by considering the project's viability and feasibility. Factors like costs, benefits, market prices, inflation, and discount rates are crucial in project evaluation. Proper estimation of future revenues and costs leads to more accurate results.