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    Capital budgeting decisions

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    What method do you think is the better one for making capital budgeting decisions---IRR or NPV? detail if possible

    Some people feel that the IRR can produce misleading results, because it assumes that the cash returned from an investment is reinvested at the same percentage rate, which might not be realistic. What do you see?

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    Capital budgeting decisions
    What method do you think is the better one for making capital budgeting decisions---IRR or NPV? detail if possible

    NPV is the better evaluation method when it comes to capital budgeting. This is due to the fact that the goal of the corporation is to maximize its present value of net profits. It calculates the ...

    Solution Summary

    This solution is comprised of a detailed explanation to answer what method is the better one for making capital budgeting decisions---IRR or NPV and which might not be realistic if using IRR.

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