Interested to Buy Any Domain ? << Click Here >> for more details...
What is NPV? What is IRR? What is the difference between NPV
and IRR method? Which and why among NPV and IRR do you think
is more appropriate technique in capital budgeting?
- 3 Answers
- 31933 Views
- Christ University, College School Exams Tests, Deloitte, I also Faced
- E-Mail Answers
Answer Posted / manoj
NPV is the Net Present Value . It is the summation of
present values of future cash flows less the present value
of cash outflow. This method takes into accoutn the time
value of money. Generally present value of cash outflow is
determined by multiplying with the discounting factor which
is the cost of capital of the company.
IRR is the Internal rate of return . It is the rate at
which the PV of Inflow is equal to the PV of outflow.
If IRR is positive then we can go with the project else
ditch it.
For capital budgeting decisions a mix of techniques is
used. No single method is accurate enough.
| Is This Answer Correct ? | 74 Yes | 16 No |
Post New Answer View All Answers
HOW MANY ACCOUNTING STANDARDS ARE PREVAILING IN INDIA AS DECLARED BY ICAI
Short answer on Allowances
What is intangiable asset?Which contents are to be verified during cheking the Transporters' bills?
What do you think you do well?
what is an advance against expenses
how to work on CMA form in manufacturing compay as well as how to analysis working capital ?
in what form is crr kept in RBI?
give the details of overheads which are not included in costing
How do you handle lack of direction or working in chaos
Short Answer on __________written Down value
Short Answer on ________Adjusting Entries
EXPAND___________IMF
what is ment by master in tally?
service tax form no ? What is CC Limit ? What is branch accounts?
explain the difference between LIFO and FIFO?
