Question

 

Explain various investment evaluation methods.

06 Mar 2026
Answer :
Word Count : 262
Investment evaluation methods are crucial tools used by businesses to assess the potential profitability and risk of various investment opportunities. Among the most commonly used methods are: 1. Net Present Value (NPV): This method calculates the difference between the present value of cash inflows and outflows over a given period. If the NPV is positive, the investment is considered worthwhile because it is expected to generate more value than the cost. 2. Internal Rate of Return (IRR): IRR is the discount rate at which the NPV
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