INPROFORUM 2007

Relationship between internal rate of return and net present value
František Střeleček, Radek Zdeněk, Jana Lososová

Language: cs
Last modified: 2014-07-10

Abstract


This paper discusses two of the most frequently used methods of capital projects evaluation – net present value and internal rate of return – and their mutual relationship. The paper tries to solve the problem of evaluation of incompatible projects and the problem of multiple IRR within capital projects with unconventional cash flow where the course of net present value function is not monotone.


Keywords


internal rate of return, net present value

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