Economics, Econometrics and Finance
2 years ago

NPV Model Outshines IRR Model in Investment Decision-Making

1 view
BCP Business & Management
Comparison of Net Present Value Model and Internal Rate of Return Model in Investment Decisions
Yutong Zhang

Paper Summary

Investment decisions are crucial for a company's success. Two common models, NPV and IRR, are used to evaluate investments. However, they can sometimes give different results. NPV is more reliable than IRR because it considers various factors accurately. When comparing projects, NPV is the better choice for making investment decisions.

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