Question: 2. Net Present Value 1. Payback 8. What is the main limitation of IRR? 9. What is the usefulness of Profitability Index (PI)? 3. Internal

3. Internal Rate of Return What will be the discount rate (I/Y)

that will make NPV =$0 4. Calculate Profitability Index (PI) Profitability Index

= NPV / Initial investment (resources consumed) 1. What do you mean

2. Net Present Value 1. Payback 8. What is the main limitation of IRR? 9. What is the usefulness of Profitability Index (PI)? 3. Internal Rate of Return What will be the discount rate (I/Y) that will make NPV =$0 4. Calculate Profitability Index (PI) Profitability Index = NPV / Initial investment (resources consumed) 1. What do you mean by payback period? What is its main limitation? 2. What is NPV? 3. NPV considers PV of all 4. What is the decision rule for NPV in selecting a project? 5. What is IRR? What is the decision rule of IRR in selecting a rroject? 6. What NPV does IRR assume? 7. Which one is better to use in making an investment decision - IRR or NPV - when they provide conflicting results

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