Tia
29-11-07, 03:00 AM
Rule for accepting projects:
(A) NPV
*accept projects with positive NPV
*in case of competing projects, accept the project with the highest NPV
(B) IRR
*accept projects where the IRR is greater than the company's cost of capital or target rate of return
(A) NPV
*accept projects with positive NPV
*in case of competing projects, accept the project with the highest NPV
(B) IRR
*accept projects where the IRR is greater than the company's cost of capital or target rate of return