Explore BrainMass

Explore BrainMass

    Valuation Methodologies - NPV, IRR, and MIRR

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

    Please help with the following problem.

    Briefly describe the following three key valuation methodologies that companies use - Net Present Value (NPV), Internal Rate of Return (IRR), and Modified Internal Rate of Return (MIRR).

    Please site any sources and provide references.

    © BrainMass Inc. brainmass.com June 4, 2020, 2:59 am ad1c9bdddf
    https://brainmass.com/business/modified-internal-rate-of-return/valuation-methodologies-npv-irr-mirr-492547

    Solution Preview

    Briefly describe the following three key valuation methodologies that companies use-- NPV, IRR, and MIRR. Please site any sources and provide references.

    NPV refers to the Net present value and it provides the value addition done by the project. NPV can be calculated by following formula: Present value of future cash flows- Initial Investment. Internal Rate of Return (IRR) is that "rate of return at which the NPV from the above investments will become zero. It is ...

    Solution Summary

    This solution discusses valuations methodologies that companies used. Those discussed include net present value (NPV), internal rate of return (IRR) and modified internal rate of return (MIRR). The explanation is provided in 299 words with two references.

    $2.19

    ADVERTISEMENT