Iloiu, Mihaela; Csiminga, Diana - In: Annals of the University of Petrosani, Economics 3 (2003), pp. 89-96
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...