Question: This question basically asks you to compare the Net Present Value (NPV) to the Internal Rate of return (IRR) on the time length of an
This question basically asks you to compare the Net Present Value (NPV) to the Internal Rate of return (IRR) on the time length of an investment project.. a. Draw a growth curve for a investment project on a log P V t space and interpret its meaning. b. On your graph show the optimal investment time under the NPV criterionc. Show the same for the IRR criteriond. In general when do you prefer IRR over NPV ?
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