4-analyzinginvestmentproject投资净现值解析.pptVIP

* * * * * * * * * * * * * * * * Mutually Exclusive vs. Independent Mutually Exclusive Projects: only ONE of several potential projects can be chosen, e.g., acquiring an accounting system. RANK all alternatives, and select the best one. Independent Projects: accepting or rejecting one project does not affect the decision of the other projects. Must exceed a MINIMUM acceptance criteria * * Case 1: IRR versus NPV Consider a project with the following cash flows: Year Cash Flow 0 -1000 1 800 2 1000 3 1300 4 -2200 Please calculate its IRR * * What do we do now? This project has t