Method of capital budgeting decisions-irr-npv


Question:

What method do you think is the better one for making capital budgeting decisions---IRR or NPV? detail if possible

Some people feel that the IRR can produce misleading results, because it assumes that the cash returned from an investment is reinvested at the same percentage rate, which might not be realistic. What do you see?

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Finance Basics: Method of capital budgeting decisions-irr-npv
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