Net Present Value and Internal Rate of Return
Accounting for Time
Key Topics Covered in This Chapter
•Present and future value
•Net present value
•Internal rate of return
•Hurdle rate and discount rate
THIS CHAPTER will introduce you to financial decision-making tools that account for time value: specifically, present and future value, net present value, and internal rate of return. These are among the most powerful and useful decision tools available to managers. Whether you’re considering the development of a new product, the purchase of a new asset, or any other type of investment, these time-value tools can greatly enhance your decisions. ...
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