New method revolutionizes ranking of investment projects for maximum profitability!
The article discusses how to compare different investment projects to determine which one is better. They focus on projects with one-time costs and benefits spread out over time. The researchers use a method called the interest method to solve conflicts in ranking these projects. The main idea is to see if a project's net present value or internal rate of return is higher to decide which project is more profitable. The study shows that sometimes a project with a higher net present value may have a lower internal rate of return, and vice versa. The interest method helps in making the best decision when choosing between alternative investment projects.