Overview

This tutorial provides a framework for analyzing different investments using the fundamental concepts of present value and discounting, and the decision rules of NPV and IRR.

Objective

On completion of this tutorial, you will be able to:

-Recognize the importance of the NPV rule in identifying profitable investments
-Calculate the internal rate of return (IRR) on an investment and use this in conjunction with NPV to decide between investment alternatives

Content

Module 1: NPV & IRR

Topic 1: Net Present Value (NPV)
Topic 2: Internal Rate of Return (IRR)

Module 2: Applications