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nympho69

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Originally posted by nympho69

simple cost-benefit analysis

comparative cost-benefit analysis

return on investment

payback period

net present value

opportunity cost

which is the best approach??

net present value method is most widely used...IRR or ROI can also be used...

the problem with IRR and NPV..is that sometimes a project will have a higher NPV yet a lower internal rate of return(irr) which makes it difficult to select. mostly people go with just the NPV

payback period comes in handy..but only if its a discounted payback period..which is takin the diff between the initial investment and the previous yrs earnings..and then multiplying that by the future value annuity factor in question

i can go on..but then again...ur not talkin about finance :D:tongue:

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Originally posted by ghhhhhost

net present value method is most widely used...IRR or ROI can also be used...

the problem with IRR and NPV..is that sometimes a project will have a higher NPV yet a lower internal rate of return(irr) which makes it difficult to select. mostly people go with just the NPV

payback period comes in handy..but only if its a discounted payback period..which is takin the diff between the initial investment and the previous yrs earnings..and then multiplying that by the future value annuity factor in question

i can go on..but then again...ur not talkin about finance :D:tongue:

haha precisely...

:idea: :idea: :idea:

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