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Comparing advantages of NPV to IRR ARR and PP

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

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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 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).

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