Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. discuss the advantages and disadvantages of net pr

Discuss the advantages and disadvantages of Net Present Value, Internal Rate of Return, & the Payback...

70.2K

Verified Solution

Question

Finance

Discuss the advantages and disadvantages of Net Present Value,Internal Rate of Return, & the Payback Method. Is one betterthan the others?

Answer & Explanation Solved by verified expert
4.4 Ratings (988 Votes)
Net Present Value NPV Advantages It considers time value of money Both the cash outflows investment in a project and inflows of an project are considered Importance is given to profitability and the risk associated with the projects Positive NPV helps in maximizing the shareholders value and projects with higher NPV values are accepted Disadvantages Mutually exclusive projects are the set of projects out of which only one project should be considered If the investment amount of two    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

Discuss the advantages and disadvantages of Net Present Value,Internal Rate of Return, & the Payback Method. Is one betterthan the others?

Other questions asked by students

Q

You are a finance employee at a financial institution, specializing in originating auto loans in a...

Finance
Q

do you think we should be testing on animal and using them for research?

Biology
Q

Should the order of spots of molecules on the TLC be different when two different eluent...

Chemistry
Q

Williamson is planning to set up a new brand called Exotic. As the brand concept is...

Operations Management
Q

Northwood Company manufactures basketballs. The company has a ball that sells for $25. At present, the...

Accounting
Q

rt 1 of 2 nts Skipped eBook Print ferences Required Identify each cost as either...

Basic Math
Q

Solve the quadratic equation by completing the square.x - 6x-6=0To complete the square, what number...

Basic Math
Q

Once you have completed the above problems and below Complete the Lesson Reflection above by...

Algebra
Q

The comparative balance sheet of Canace Products Inc. for December 31, 20Y6 and 20Y5, is...

Accounting
Q

2. A semiconductor manufacturer has been ordered by the city to stop discharging acidic waste...

Accounting
Q

Gridiron Merchandising anticipated selling 30,000 units of a major product and paying sales commissions of...

Accounting
Q

The amounts in the Salaries Payable account for Ammonia Company were $14,500 and $16,000 on...

Accounting