Capital Budgeting
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How to Use IRR for Investment Decisions: Core Principles and a Worked Example
IRR turns an investment into a single, intuitive rate of return, but used carelessly it can steer you toward the option that creates less value. This guide covers the core IRR decision rule, how to set a hurdle rate, a… Continue reading
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What Is Net Present Value (NPV)? Core Concept, Benefits, and Pitfalls Explained with an ERP Investment Example
Net present value (NPV) is the go-to metric for evaluating major IT investments. This guide explains NPV from the time value of money up, covers four reasons it is so widely used, flags pitfalls around discount rates and Excel’s NPV… Continue reading
