Discussion: Rate of Return
Rate of Return & Net Present Value
When using the IRR approach, when can the internal rate of return be determined simply by dividing the initial outlay by the cash flows?
Will a decision that is based on NPV ever change if it were based on IRR instead?
Why or why not?
Reading: Zelman, W., McCue, M., Millikan, A. & Glick, N. (2014). Financial management of health care organizations: an introduction to fundamental tools, concepts, and applications (4th ed.). Hoboken: NJ: Wiley & Sons. ISBN: 9781118466568
Chapters 6 & 7.