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When the management team considers what projects to continue with, there are positive NPV projects and...

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Finance

When the management team considers what projects to continuewith, there are positive NPV projects and negative NPV projects.Based on the readings for this week, what are the differencesbetween these two projects? What are some problems with the IRRmethodology compared to the NPV methodology?

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A positive NPV project implies that the project has greater discounted cash inflows as compared to cash outflows This means that the project is adding value to the business A negative    See Answer
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When the management team considers what projects to continuewith, there are positive NPV projects and negative NPV projects.Based on the readings for this week, what are the differencesbetween these two projects? What are some problems with the IRRmethodology compared to the NPV methodology?

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