Please enable JavaScript.
Coggle requires JavaScript to display documents.
Unit 2 FIN 31 - Coggle Diagram
Unit 2 FIN 31
-
-
NPV
-
Investment should be accepted if NPV is positive, rejected if NPV negative
Payback rule
An investment is acceptable if its calculated payback period is less than a prespecified number of years.
IRR
Exceptions
Mutually exclusive projects- initial investment substantially different or timing of cash flows substantially different
-