Discuss the relative merits of NPV over IRR.

Initial Response should be between 120-150 words.

DQ1

• Discuss the relative merits of NPV over IRR.
• Provide an argument or example of why you think one is superior to the other, or are both acceptable?
• Which technique does your company use?

DQ2

• What is an “Incremental Cash Flow?”
• Why is this type of Cash Flow important to Capital Budgeting calculations?

Solution: