Difference between npv-irr-payback analysis


Question 1: What is the difference between NPV,IRR, Payback analysis and how are these methods related?

Question 2: What are examples of opportunity costs and incremental cash flows?

Question 3: How does the cash flow of a project impact whether or not a company pursues a certain project?

Qustion 4: Give an example of how you would employ the different capital budgeting techniques to a real life situation or a situation you can envision. How would you differentiate among three different projects if you could only pursue one of those projects?

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Finance Basics: Difference between npv-irr-payback analysis
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