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IRR method and NPV method

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Whats the difference between the internal rate of return in (IRR) method and the net present value (NPV) method? What is the IRR method and NPV method?

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Solution Summary

The difference between the internal rate of return in method and the net present value method is determined. The IRR and NPV method is determined.

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NPV
Net Present value helps in calculating the value addition done by the project. It is calculated by:
NPV= Present value of Future cash flows- Initial investments.
IRR
Internal rate of return refers to the return earned from the project. At IRR, NPV= zero. Pick the project having ...

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