qrb 501 bus math wk6 qu-4

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Capital Budgeting Clarification Example

MIRR & IRR

 

There are many concepts covered by the Capital Budgeting Clarification Example.  Although you should have an understanding of each of these techniques, you should focus on understanding the NPV & IRR sections since those are the ones that will be needed for your week six team projects.  Many students ask why I ask students to use the template that I provide.  I do that to limit the amount of time you will put into the project.  There are so many ways to evaluate a capital budgeting project, but for the team assignment this week, youdo not need to calculate the payback period, MIRR, etc.  Please be sure to stick to the template and do what's necessary.

 

Now for a question to ponder:

 

If we can calculate MIRR, why bother with IRR?

 

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