DoD Sample Conclusion
IRR and NPV:
- give the same answer
- are complementary
- give a better answer than either alone
Both IRR and the DoD risk adjusted NPV give the same answer: Project B has greater risk
A risk adjusted IRR is also calculable along with risk adjusted NPV
IRR is useful alone for comparison with commercial rates of return, other countries, or other CIM projects
Copyright © 1991-1997, Ray Martin