Interested to Buy Any Domain ? << Click Here >> for more details...
WHAT IS IRR,NPV AND AT WHICH RATE THE PRESENT VALUE IS
CALCULATED
- 3 Answers
- 6841 Views
- FCI, I also Faced
- E-Mail Answers
Answers were Sorted based on User's Feedback
Answer / h.r. sreepada bhagi
Both IRR & NPV are Capital Budgeting techniques using the
concept of present value of money.
NPV (Net Present Value)is the method of arriving at net
cash-flow by applying a discount rate (Interest rate) over
the period of cash flows from the project(business) in which
money is invested. If the NPV is positive and good, teh
project is worth considerable for take off.
IRR (Internal Rate of Return) is the rate of return at which
the Present value of future cash-flows and present cash
outflow (investment) is Zero. If the IRR is above the cost
of capital, the project is considered to be worth going
ahead. IRR is also called DCF (Discounted Cash Flow method).
| Is This Answer Correct ? | 3 Yes | 0 No |
Answer / naveen agarwal
IRR : INTERNAL RATE OF RETURN IS CALCULATED WHERE
DISCOUNTED CASH IN-FLOW MATCHING(EQUAL) TO DISCOUNTED CASH
OUT FLOW, WHENEVER NET PRESENT VALUE VALUE BECOME ZERO,
NPV:NET PRESENT VALUE IS CALCULTED ON THE BASIS OF
DISCOUNTED PRESENT VALUE OF CASH INFLOW IS SUBRACTED FROM
THE DISCOUNTED PRESENT VALUE OF CASH OUT FLOW.
| Is This Answer Correct ? | 1 Yes | 0 No |
Paid , life insurance premium Rs.2500
What is trail balance
Equipment A has a cost of Rs.75,000 and net cash flow of Rs.20000 per year for six years. A substitute equipment B would cost Rs.50,000 and generate net cash flow of Rs.14,000 per year for six years. The required rate of return of both equipments is 11 per cent. Calculate the IRR and NPV for the equipments. Which equipment should be accepted and why
What is LC?
what single discount is to2 successive discount of 10%& 15%
How many accounting standards are currently published?
Our is a banking Activity, one person is supplying printing advertisement sheet of our product, whether he is liable to deducte TDS @ 1%
what is the difference bitween Consolidated and Parent Companies?
what is mean by paidup capital.?
Define partitioning in accounting?
why the accounts as personal real and nominal
How is the accounting for hire purchase transactions done?
Audit 
