Discuss how the IRR and NPV functions can help make informed financial decisions
What will be an ideal response?
The Internal Rate of Return (IRR) function can help to determine the profitability of an investment. If the IRR is higher than either a risk-free investment or greater than or equal to the required rate of return (RRR), then the investment should be considered. Another function that can be used in making investment decisions is the net present value (NPV) function. The NPV function can be used to determine the value of an investment by analyzing a series of future cash flows expected to occur over the life of an investment. If the NPV of an investment is negative, then other investment options should be considered.
You might also like to view...
You can reset a slide's background if you modify it
Indicate whether the statement is true or false
The original class that is used to derive a new class using inheritance is called ____________________
a) a superclass b) a parent class c) a base class d) all of the above e) neither a, b, nor c