Investment Alternatives Using Financial Valuation Decision Models
Free CPA BAR (Business Analysis & Reporting) lesson in Business Analysis. 19 min read, ~2,785 words.
Net present value discounts each cash flow at the cost of capital and subtracts the initial investment; accept if NPV is positive. This is the primary criterion. Internal rate of return is the discount rate where NPV equals zero; accept if IRR exceeds the hurdle rate, but watch for multiple-IRR...
Read the full lesson, free →
Worked examples and practice. Free with a free account, no card.
What this lesson covers
- Content
- Example 1
- Common Mistakes
- Check Your Understanding
- Exam Shortcuts
Learning objectives
- I.B3
Browse all free CPA BAR lessons or jump into free CPA BAR practice questions.