advantagesand disadvantages of irradvantages of, Finance Basics

+44 141 628 6080
[email protected]

advantagesand disadvantages of irradvantages of

Advantagesand Disadvantages of IRR

Advantages of IRR

It seems time value of money
It seems cash flows over the whole life of the project.
It is compatible along with the maximization of owner's wealth since, if it is higher than the cost of finance, owners' wealth will be maximized.

Not like the NPV method, it does not employ the cost of finance to discount inflows and for this purpose it will indicate a rate of return of interval to the project against that various ventures can be assessed as to their viability.

Disadvantages of IRR

Difficult to utilize.
Expensive to use since it calls for trained manpower and may employ computers especially whereas inflows are of large magnitude and extending beyond the general limits.
It may give multiple results some involving positive IRR whether in case it may be difficult to utilize in choosing such venture is more viable.

View Complete Question

Request for Solution File

Ask an Expert for Answer!!

Finance Basics: advantagesand disadvantages of irradvantages of

Reference No:- TGS0202590

Expected delivery within 24 Hours

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Recent Questions Asked Finance Basics

Q : accept or reject rule of npvunder this method a

accept or reject rule of npvunder this method a company should accept an investment venture if npv is positive that is if present value of cash

Q : irr or internal rate of returnthis method is a

irr or internal rate of returnthis method is a discounted cash flow technique that uses the principle of npv it is described as the rate such

Q : trial and error methoda select any rate of

trial and error methoda select any rate of interest on random and employ it to compute npv of cash inflowsb if rate selected produces npv lower than

Q : acceptance rule of irrirr will accept a venture

acceptance rule of irrirr will accept a venture if its irr is higher than or equivalent to the minimum required rate of return such is usually the

Q : advantagesand disadvantages of irradvantages of

advantagesand disadvantages of irradvantages of irrit seems time value of moneyit seems cash flows over the whole life of the projectit is compatible

Q : profitability index or pipi benefit-cost ratio

profitability index or pipi benefit-cost ratio present value of inflows present value of cash outlaywhether pi is greater than 10 invest and

Q : example of npv value a company is faced along

example of npv value a company is faced along with the following five 5 investment opportunities as costnpvpi total pv

Q : advantages and disadvantage of profitability

advantages and disadvantage of profitability indexadvantages of profitability indexa simple to understand and utilizeb the part of npv in the venture

Q : comparison between modern and traditional methods

comparison between modern and traditional methods both modern and traditional methods will indicate or show strong weaknesses which like a company

1960494

Questions
Asked

3,689

Active Tutors

1439757

Questions
Answered

Start Excelling in your courses, Ask a tutor for help and get answers for your problems !!

ask Question

Asked Questions

Why does victor coin the term hyper-violence

Why does victor coin the term hyper-violence instead of just using violence? And second, how is hyper-violence display in the Oakland community?

Review the real-life cat and mouse chase

Real-Life Cat and Mouse Chase: Understanding the Perceptions and Attitudes of Street Vendors of Metro Manila towards MMDA Regulation No. 03-004

How does the pyramid change

Staying with Nigeria, rewind the year to 1950. Using the +5 year control, fast forward in 5 year increments until you reach 2020.

How the major schools of thought within sociology

Question: Discover how the major schools of thought within sociology explain social stratification.

Discussion about idea of the tramp stamp

Jane is doing a study about tattoos. She is interested in studying the idea of the "tramp stamp" (a tattoo in the small of a woman's back).

How are schools important in the struggle for power

Question: How are schools important in the struggle for power and status?

How sociological models help understand mental illness

Based on the chapter by Allen Furr on the sociology of mental illness, How do sociological models help you understand mental illness differently