IRR: Internal rate return
NPV: Net present value
Both are measure of the viability of a project(s)
You can have multiple IRR (because of discontinued cash flows) but you always have one NPV.
IRR vs NPVWhen the exercise of capital budgeting is undertaken to calculate the cost of a project and its estimated returns, two tool are most commonly used. These are Net Present Value (NPV) and Internal Rate of Return (IRR). When evaluating a project, it is generally assumed that higher the value of these two parameters, the more profitable the investment is going to be. Both the instruments are made use of to indicate whether it is a good idea to invest in a particular project or series of projects over a period of time which is normally more than a year. Net present value goes down well with those who are laymen as it is expressed in units of currency and as such preferred method for such purposes. There are however many differences between both parameters which are discussed below.IRRTo know whether a project is feasible in terms of returns on investment, a firm needs to evaluate it with a process called capital budgeting and the tool which is commonly used for the purpose is called IRR. This method tells the company whether making investments on a project will generate the expected profits or not. As it is a rate that is in terms of percentage, unless its value is positive any company should not proceed ahead with a project. The higher the IRR, the more desirable a project becomes. This means that IRR is a parameter that can be used to rank several projects that a company is envisaging.IRR can be taken as the rate of growth of a project. While it is only estimation, and the real rates of return might be different, in general if a project has a higher IRR, it presents a chance of higher growth for a company.NPVThis is another tool to calculate to find out the profitability of a project. It is the difference between the values of cash inflow and cash outflow of any company at present. For a layman, NPV tells the value of any project today and the estimated value of the same project after a few years taking into account inflation and some other factors. If this value is positive, the project can be undertaken, but if it is negative, it is better to discard the project.This tool is extremely helpful for a company when it is considering to buy or takeover any other company. For the same reason, NPV is the preferred choice to real estate dealers and also for brokers in a stock market.Difference between IRR and NPVWhile both the IRR and NPV try to do the same thing for a company, there are subtle differences between the two that are as follows.While NPV is expressed in terms of a value in units of a currency, IRR is a rate that is expressed in percentage which tells how much a company can expect to get in percentage terms from a project down the years.NPV takes into account additional wealth while IRR does not calculate additional wealthIf cash flows are changing, IRR method cannot be used while NPV can be used and hence it is preferred in such casesWhile IRR gives same predictions, NPV method generates different results in cases where different discount rates are applicable.Business managers are more comfortable with the concept of IRR whereas for general public, NPV is better for grasping.
Time vs. Money Quantity vs. Quality Stability vs. Speed -dj
Apple's MAC laptops vs. Windows Coke vs. Pepsi
http://agriculturevsindustrydebate.blogspot.com/ here u can find debate on agriculture vs industry hope u will like
So far the scheduled match are: Edge VS Albertio Del Rio (singles match for the World Heavyweight Championship Belt) The Miz VS John Cena (singles match for the WWE Championship Belt) The Undertaker VS Triple H (singles match) Jerry Lawler VS Michael Cole (with Stone Cold Steve Austin as a special guest referee!) Randy Orton VS CM Punk
IRR vs NPVWhen the exercise of capital budgeting is undertaken to calculate the cost of a project and its estimated returns, two tool are most commonly used. These are Net Present Value (NPV) and Internal Rate of Return (IRR). When evaluating a project, it is generally assumed that higher the value of these two parameters, the more profitable the investment is going to be. Both the instruments are made use of to indicate whether it is a good idea to invest in a particular project or series of projects over a period of time which is normally more than a year. Net present value goes down well with those who are laymen as it is expressed in units of currency and as such preferred method for such purposes. There are however many differences between both parameters which are discussed below.IRRTo know whether a project is feasible in terms of returns on investment, a firm needs to evaluate it with a process called capital budgeting and the tool which is commonly used for the purpose is called IRR. This method tells the company whether making investments on a project will generate the expected profits or not. As it is a rate that is in terms of percentage, unless its value is positive any company should not proceed ahead with a project. The higher the IRR, the more desirable a project becomes. This means that IRR is a parameter that can be used to rank several projects that a company is envisaging.IRR can be taken as the rate of growth of a project. While it is only estimation, and the real rates of return might be different, in general if a project has a higher IRR, it presents a chance of higher growth for a company.NPVThis is another tool to calculate to find out the profitability of a project. It is the difference between the values of cash inflow and cash outflow of any company at present. For a layman, NPV tells the value of any project today and the estimated value of the same project after a few years taking into account inflation and some other factors. If this value is positive, the project can be undertaken, but if it is negative, it is better to discard the project.This tool is extremely helpful for a company when it is considering to buy or takeover any other company. For the same reason, NPV is the preferred choice to real estate dealers and also for brokers in a stock market.Difference between IRR and NPVWhile both the IRR and NPV try to do the same thing for a company, there are subtle differences between the two that are as follows.While NPV is expressed in terms of a value in units of a currency, IRR is a rate that is expressed in percentage which tells how much a company can expect to get in percentage terms from a project down the years.NPV takes into account additional wealth while IRR does not calculate additional wealthIf cash flows are changing, IRR method cannot be used while NPV can be used and hence it is preferred in such casesWhile IRR gives same predictions, NPV method generates different results in cases where different discount rates are applicable.Business managers are more comfortable with the concept of IRR whereas for general public, NPV is better for grasping.
rhino
LevelMatchPasswords16All vs BermudaN/A15All vs NetherlandsCRICKET14All vs CanadaFOOTBALL13All vs ScotlandSPEEDWAY12All vs KenyaBASEBALL11All vs IrelandDAGGY10All vs ZimbabveDINGO9All vs BangladeshCARTMAN8All vs West IndiesCLASSIC7All vs Sri LankaMICKEY6All vs PakistanMCBEAR5All vs New ZealandROCKET4All vs EnglandBGARK3All vs AustraliaMONKEY2All vs IndiaBEEFY1All vs South AfricaTUGGA
Whitebeard
pinhead from hellraiser
mechagodzilla
Man vs ManMan vs NatureMan vs HimselfMan vs GodMan vs Society
the fallen
it would come down to hulk and juggernaut. but i choose hulk. sorry juggernaut fans.
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the 77 crocodiles
Them vs. You vs. Me was created on 2007-03-06.