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What is the NPV and IRR method for project valuation? In order to receive full credit...

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Finance

What is the NPV and IRR method for project valuation? In orderto receive full credit for this answer, you should (1) Define NPVand IRR in your own words, (2) Provide the rules ofacceptance/rejection, and (3) discuss at least one strength and oneweakness in using this method.

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4.5 Ratings (770 Votes)
1NPV is the present value of all cash inflows subtracted by investment It is the value added due to taking up a project IRR is the rate at which NPV of a project is 0 The discount rate of all cash flows which provides 0 NPV 2 IF NPV is greater than    See Answer
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What is the NPV and IRR method for project valuation? In orderto receive full credit for this answer, you should (1) Define NPVand IRR in your own words, (2) Provide the rules ofacceptance/rejection, and (3) discuss at least one strength and oneweakness in using this method.

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