Explore BrainMass
Share

Key Valuation Methodologies: NPV, IRR & MIRR

This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

After meeting with the VP of Accounting, you believe you need to get a better understanding of the plant construction project. You call the financial analyst working on the project and ask that she bring the financials to you to discuss the valuation methodologies. Meeting with the financial analyst, discuss three key valuation methodologies that companies use -- NPV, IRR, and MIRR.

© BrainMass Inc. brainmass.com March 21, 2019, 7:26 pm ad1c9bdddf
https://brainmass.com/business/capital-budgeting/key-valuation-methodologies-npv-irr-mirr-292444

Solution Preview

NPV is the defined as the difference between Initial Cost Outlay and present value of expected cash inflows. If the NPV of a prospective project is positive, it should be accepted. However, if NPV is negative, the project should ...

Solution Summary

This solution discusses the three key valuation methodologies that companies use, including NPV, IRR and MIRR.

$2.19