Question: What does it mean for IRR to be 'Internal' rate of return? In what sense NPV is 'external'? PROFESSOR'S GUIDANCE FOR THIS WEEK'S LE: NPV

What does it mean for IRR to be 'Internal' rate of return? In what sense NPV is 'external'?

PROFESSOR'S GUIDANCE FOR THIS WEEK'S LE:

NPV and IRR are alternative methods of evaluating capital projects. Here we get at their distinction.

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