Number represent with respect to the firms shareholders

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Reference no: EM13730408

Answer must be 250-300 words long.

1. Why is NPV considered a superior method of evaluating the cash flows from a project? Suppose the NPV for a project’s cash flows is computed to be $3,000. What does this number represent with respect to the firm’s shareholders?

Answer must be 250-300 Words long.

2. Describe how the IRR is calculated and describe the information this measure provides about a sequence of cash flows. What is the IRR criterion decision rule?

Reference no: EM13730408

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