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Tag: npv

  • The Modified Internal Rate of Return

    Using the IRR has been a much-used tool for evaluating potential investments. This is most likely due to the simplicity of using it. Yet, the IRR has some flaws, the most crucial one being that it assumes the cash flows will be reinvested for the life of the project at the rate which equals the…

  • Obtaining the Net Present Value (NPV)

    Calculating the (NPV), or the Internal Rate of Return (IRR) is about the same to finding the present value of an uneven cash-flow. This is what was covered in Present Value of Uneven Cash-Flow. As you may recall a investment opportunity came your way which was: Let’s say you have the opportunity for an investment…