The net present value method differs from the

internal rate of return method in that:

the net present value method discounts cash flows

using the risk-free rate of return and the internal

rate of return method does not.

the internal rate of return method finds the rate of

return that results in a zero net present value.

both methods yield similar conclusions for mutually

exclusive projects.

"the net present value method discounts cash

flows by the required rate of return, whereas the

internal rate of return method does not take into

The primany reason for developing a conceptual framework was to: provide an alternative view to the accounting standards, asses to revise the accounting standards. reduce the number of accounting standards needed. enable regulators to develop accounting standards that are consistent and logically formulated