Earlier today you had a lively conversation with Dan Payne. As CFO you hired Dan, a recent U of S business grad, to be your new capital budgeting analyst. Dan told you that he is concerned about how your company relies on NPV, only, in the analysis of capital projects. 

Specifically, Dan wonders why your firm uses only NPV when NPV and IRR incorporate the same data, and the same TVM theory. Is your company's focus on NPV appropriate? Discuss.

Answer rating: 100% (QA)

Dan raises a valid point about the use of NPV as the sole method of analysis for capital projects Wh... View the full answer