IDEAS home Printed from https://ideas.repec.org/a/vls/rojfme/v8y2020i1p125-128.html
   My bibliography  Save this article

Net Present Value (Npv) Versus Internal Rate Of Return (Irr) In Taking The Investment Decision For Mutually Exclusive Projects

Author

Listed:
  • MILITARU, Camelia

    (Romanian-American University, Bucharest)

Abstract

In current economic context, characterized by multiple challenges and uncertainties, it is extremely important taking investment decision to be rigorously founded. Due to fact that at base of its adoption are methods for evaluation of the investment projects, especially those indicators that use discounting technique for ranking investment process, Net Present Value (NPV) and Internal Rate of Return (IRR) require detailed analysis, especially for mutually exclusive projects, because there are situations where the two methods lead to different decisions, such as: NPV indicates the adopting of one project, whereas IRR choose another project.

Suggested Citation

  • MILITARU, Camelia, 2020. "Net Present Value (Npv) Versus Internal Rate Of Return (Irr) In Taking The Investment Decision For Mutually Exclusive Projects," Journal of Financial and Monetary Economics, Centre of Financial and Monetary Research "Victor Slavescu", vol. 8(1), pages 125-128, October.
  • Handle: RePEc:vls:rojfme:v:8:y:2020:i:1:p:125-128
    as

    Download full text from publisher

    File URL: http://www.icfm.ro/RePEc/vls/vls_pdf_jfme/vol8i1p125-128.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Investment decision; Net Present Value; Internal Rate of Return;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vls:rojfme:v:8:y:2020:i:1:p:125-128. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Daniel Mateescu (email available below). General contact details of provider: https://edirc.repec.org/data/cfiarro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.