Explore BrainMass

Explore BrainMass

    Present Value Versus IRR

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

    How does the concept of present value analysis affect the firm's investment program? How does Internal Rate of Return and Modified Internal Rate of Return enter into the capital investment program? Which method is preferred over the other methods?

    © BrainMass Inc. brainmass.com June 4, 2020, 12:07 am ad1c9bdddf
    https://brainmass.com/business/capital-budgeting/present-value-versus-irr-319722

    Solution Preview

    I would recommend either the net present value (NPV) or the internal rate of return (IRR) in determining investment projects in my company. Without knowing the details of the investment, it is not possible for me to decipher between the two.

    Although the banks would like to see ...

    Solution Summary

    This solution explains NPV and IRR and its differences and similarities.

    $2.19

    ADVERTISEMENT