MANAGEMENT

Detailed explanation-1: -IRR is useful when comparing multiple projects against each other or in situations where it is difficult to determine a discount rate. NPV is better in situations where there are varying directions of cash flow over time or multiple discount rates.

Detailed explanation-2: -Which Is Better: NPV or IRR? It depends. IRR is usually more useful when you are comparing across multiple projects or investments, or in situations where it is difficult to determine the appropriate discount rate.

Detailed explanation-3: -An alternative to net present value (NPV) is the payback period or payback method, which refers to the amount of time it takes for the investor to reach the breakeven point and recover their initial investment cost.

Detailed explanation-4: -IRR is ideal for analyzing capital budgeting projects to understand and compare potential rates of annual return over time. In addition to being used by companies to determine which capital projects to use, IRR can help investors determine the investment return of various assets.