question archive The investment Detective Answer Q1: We can rank the projects by simply inspecting the cash flows (mention bellow), yet it’s not a good measure to rank them
Subject:BusinessPrice: Bought3
The Ranking by simply inspecting the cash flows:
B. Internal Rate of Return (IRR)
B. Internal Rate of Return (IRR)
Selected Projects as per the quantitative methods as follow:
• Net Present Value is considered the best approach since it:
ii. Uses all the Cash Flows of the project.
iii. And discounts the Cash Flows properly.
Selected Projects as per the quantitative methods as follow:
Project 2 Equipment Depreciation
Project 3 Land or real assets investments
Project 4 Diary factory that incur agricultural costs