MN2415 Assignment:
In investment appraisals, both Net Present Value (NPV) and Internal Rate of Return (IRR) techniques are considered to be superior to the more basic techniques.
(a) Discuss the relative advantages and disadvantages of NPV and IRR, and critically evaluate them as better methods for appraising investment projects. (50 Marks)
Academics argue that both NPV and IRR techniques can be misleading, however finance managers argue that NPV is superior to IRR in making decisions.
(b) Critically evaluate both the academics’ and the finance managers’ claims, and discuss your position with illustrative examples. (50 marks)
Word length: 2000 words not including references, tables and illustrations