FINANCIAL ADVANTAGES

FINANCIAL ADVANTAGES

Advantages of internal rate of return versus the net present value

Internal rate of return tells you the return that you will get on your investment in percentage terms. It is easy to conclude the result as there is no such long figures. It tells the ideal discount rate which you demand on your investment. It helps in deciding your desired rate of return to make your investment safe and secure (Mac abacus, 2006).

Net present value tells you the present worth of the project in monetary terms. NPV of the project can calculate different cash flows. This ...