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NPV (PV Inflows) - (PV Outflows)

NPV is calculated as the present value of cash inflows minus the present value of cash outflows from an investment project. IRR is the discount rate at which the net present value of all cash flows from a particular project or investment equal zero. It is calculated as the interest rate that sets the net present value of a series of future cash flows equal to zero.

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0% found this document useful (0 votes)
119 views1 page

NPV (PV Inflows) - (PV Outflows)

NPV is calculated as the present value of cash inflows minus the present value of cash outflows from an investment project. IRR is the discount rate at which the net present value of all cash flows from a particular project or investment equal zero. It is calculated as the interest rate that sets the net present value of a series of future cash flows equal to zero.

Uploaded by

drsuresh26
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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NPV = (PV inflows) - (PV outflows)

IRR = (FV/PV)1/N -1

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