Purchase Solution

Comparing advantages of NPV to IRR ARR and PP

Not what you're looking for?

Ask Custom Question

Please compare the advantage of using NPV instead of other evaluation methods such as (IRR, ARR and PP) in decision making.

Purchase this Solution

Solution Summary

Your tutorial is 219 words and a reference and compares net present value (NPV) to Accounting Rate of Return (ARR), Payback period (PP), Internal rate of return, and annualized rate of return (IRR).

Solution Preview

Compare net present value (NPV) to:

Accounting Rate of Return (ARR)
Payback period (PP)
Internal rate of return or annualized rate of return (IRR)

NPV, like IRR, incorporates the time value of money and that gives the decision-maker higher values for funds that are available sooner (for reinvestment). Without the time value of ...

Solution provided by:
Education
  • BSc, University of Virginia
  • MSc, University of Virginia
  • PhD, Georgia State University
Recent Feedback
  • "hey just wanted to know if you used 0% for the risk free rate and if you didn't if you could adjust it please and thank you "
  • "Thank, this is more clear to me now."
  • "Awesome job! "
  • "ty"
  • "Great Analysis, thank you so much"
Purchase this Solution


Free BrainMass Quizzes
Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

Business Processes

This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.

Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

IPOs

This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)