What is difference between IRR and NPV

Question

Accepted Answer

IRR is the rate at which the net present value of cash flows becomes zero, while NPV is the difference between the present value of cash inflows and outflows.

IRR is a percentage value, while NPV is a monetary value.
IRR assumes reinvestment of cash flows at the same rate, while NPV does not.
IRR is used to evaluate the profitability of an investment, while NPV measures the value created by an investment.
IRR can have multiple solutions, while NPV has a unique solution.
IRR is used to rank projects, while NPV is used to determine the acceptability of projects.

Accepted Answer

Net present value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows over a period of time. By contrast, the internal rate of return (IRR) is a calculation used to estimate the profitability of potential investments.

Helpful

Accepted Answer

Net present value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows over a period of time. By contrast, the internal rate of return (IRR) is a calculation used to estimate the profitability of potential investments.

Helpful

Accepted Answer

Net present value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows over a period of time. By contrast, the internal rate of return (IRR) is a calculation used to estimate the profitability of potential investments.

What is difference between IRR and NPV

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