Investment project evaluation – NPV and IRR criteria

Mihaela Iloiu and Diana Csiminga
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Mihaela Iloiu: University of Petroşani, Romania
Diana Csiminga: University of Petroşani, Romania

Annals of the University of Petrosani, Economics, 2003, vol. 3, 89-96

Abstract: This paper is a about two rules used in capital investment decision-making. NVP and IRR incorporate the time value of money using a discount factor based in the firm’s relevant interest rate or cost of capital. Decision-makers clearly prefer IRR to NPV although NPV technique offers more practical advice for managers them IRR

Keywords: net present value (NPV); internal rate of return; investment; capital; decision-making (search for similar items in EconPapers)
Date: 2003
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Persistent link: https://EconPapers.repec.org/RePEc:pet:annals:v:3:y:2003:p:89-96

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