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Published in:
2011 | OriginalPaper | Chapter
NPV and IRR
Author : Javier Estrada
Published in: The Essential Financial Toolkit
Publisher: Palgrave Macmillan UK
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This chapter discusses the two most widely used tools for project evaluation: NPV and IRR. Both tools require a critical input, the cost of capital, one of the most essential magnitudes for any company, which is also briefly discussed. Both NPV and IRR have applications that go way beyond project evaluation, and no toolbox would be complete without them.