Use the internal rate of return method

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Reference no: EM132023399

When considering new projects some business owners want to know how quickly they will earn their money back (and use the Payback (PB) method or the discounted payback (DPB) method). Others want to know what the rate of return on the project will be and use the Internal Rate of Return (IRR) method). Still others want to know how the project will affect the value of their business (and use the Net Present Value (NPV) method).

Identify and describe the strengths and weaknesses of each of these four methods.

Which of them would you recommend as the best method? Explain why.

Reference no: EM132023399

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