Step 5 of 6 | Menu

Notes on NPV VS IRR

people.stern.nyu.edu

Most of the time the NPV rule (accept if positive) and the IRR rule (accept if greater than the cost of capital) will give you the same decision. However, that is not always true. One of these times is when you are dealing with mutually exclusive projects with different sizes (called scale differences). When there is any doubt, you should go with NPV.

Visit Nyu

0 comments

Log in or Sign up to comment