S2W3 Future and present values

Question 1

what are the 4 capital investment appraisal techniques

Answer 1

NPV (net present values)
IRR (internal rate of return)
Payback (Payback period)
ARR (Accounting rate of return)

Question 2

similarities between NPV and IRR

Answer 2

takes into account the time value of money

Question 3

similarities between payback and ARR

Answer 3

techniques that ignore the time value of money

Question 4

what is IRR

Answer 4

the discount rate that makes NPV equal to 0
shows maximum discount rate should be fine and how strong project is