Value Judgments
13 September 2012
A net present value profile offers a flexible financial model for most capital investment appraisals
In spite of all the efforts to convince managers that the net present value (NPV) is the "correct" method of investment appraisal, recent research shows that they continue to prefer the internal rate of return (IRR). Yet, although a number of improved versions of the IRR have been developed, they too have been condemned by some academics.
But no single investment...