Compare and contrast the Internal Rate of Return (IRR), the Net Present Value (NPV) and Payback approaches to capital rationing

Compare and contrast the Internal Rate of Return (IRR), the Net Present Value (NPV) and Payback approaches to capital rationing

Compare and contrast the Internal Rate of Return (IRR), the Net Present Value (NPV) and Payback approaches to capital rationing. Which do you think is better? Why?  Provide examples and evidence from two articles from ProQuest to support your position. Your post should be 200-250 words in length.

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Internal Rate of Return (IRR) is taken as a financial metric for the money moving out and money coming in. IRR analyzes the financial cash flow. The Net Present Value (NPV) on the other hand, is the difference that exists between the amount of cash inflows and the amount of cash outflows measured in present values (Brigham, 2016). In NPV, capital budgeting analyzes the profit made at the moment from the project. The Payback approach is the period taken to recover the money invested…

APA

279 words

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