Flashcards in GPFP - 9 Deck (8)
The two time value of money calculations that can be used to analyze the attractiveness of a particular project, or to compare alternative project choices
NPV and IRR
If NPV calculation is positive, the investment is ___ investment.
If NPV calculation is negative, the investment is ___ investment.
not a good
NPV of zero would indicate that the investment is?
Which time value of money calculation calculates the discount rate at which the present value of the cash inflows equals the present value of the cash outflows?
The IRR is the rate at which NPV is?
Equal to zero
If the IRR is larger than the investor's required return or cost of capital, the investment is?