公司理财及财务管理知识分析(双语)(ppt 45页).pptVIP

Summary of Decisions for the Project Summary Net Present Value Accept Payback Period Reject Discounted Payback Period Reject Average Accounting Return Reject Internal Rate of Return Accept 9-* NPV vs. IRR NPV and IRR will generally give us the same decision Exceptions Nonconventional cash flows – cash flow signs change more than once Mutually exclusive projects Initial investments are substantially different (issue of scale) Timing of cash flows is substantially different 9-* Internal Rate of Return Pitfall 1 - Lending or Borrowing? With some cash flows (as noted below) the NPV of the project