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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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    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 ...

    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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