If the IRR for a project is 20%, then the project's NPV would be:

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If the IRR for a project is 20%, then the project's NPV would be ZERO

-The Internal Rate of Return (IRR) is the rate at which the present value of the annual cash inflows is equals to the Present value of annual cash outflows.

- Net Present Value [NPV] method is the one of the most commonly used method for taking capital budgeting decisions with respect to the investment proposals.

- The NPV Indicates the value of the investment project or the net worth of the investments to the firm .Net Present Value [NPV] is the difference between the total present value of the annual cash inflows and present value of the cash outflows

-If the NPV is Zero, it means that the total present value of the annual cash inflows equals the total present value of cash outflows

-The NPV method determines that the how much value that the Investment or projects added to the firms value and NPV is consistent with maximizing firm value.

jeff jeffy answered 4 months ago

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