Describe the evaluation techniques to consider multiple projects that are mutually exclusive?
Following are the evaluation techniques to consider multiple projects that are mutually exclusive:
Net present value (NPV) is the contrast between the present value of money inflows over some undefined time frame and the present value of money outpourings. The NPV is utilized to dissect the benefit of anticipated speculation or undertaking in capital budgeting and venture arranging.
The internal rate of return (IRR) is a capital budgeting metric used to gauge the benefit of expected speculations. The IRR is a markdown rate which is equivalent to zero for the net present value (NPV) of all cash flows from a given venture. Counts for IRR depend on a similar equation with respect to NPV.
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