Some people claim, The internal rate of return is more difficult to compute than the net present value of a project The internal rate of return method can never give a better answer than the net present value method Why, then, do you suppose that so many people use the internal rate of return metho...

We think the answer lies in the ease of comparing rates which after all are return ...

Some people claim, The internal rate of return is more difficult to compute than the net present

Question:

Some people claim, “The is more difficult to compute than the of a project. The method can never give a better answer than the method.” Why, then, do you suppose that so many people use the method?

Net Present Value
What is NPV? The net present value is an important tool for capital budgeting decision to assess that an investment in a project is worthwhile or not? The net present value of a project is calculated before taking up the investment decision at... Internal Rate of Return
Internal Rate of Return of IRR is a capital budgeting tool that is used to assess the viability of an investment opportunity. IRR is the true rate of return that a project is capable of generating. It is a metric that tells you about the investment...