payback

How to evaluate projects and investments – NPV vs IRR

How to evaluate projects and investments – NPV vs IRR

Every business at some stage has to evaluate projects or investments and choose the ones that will benefit the business most. Usually, it will be faced with a limited budget and spending this capital wisely is critical. This process is called capital budgeting and the most used decision making tools…

How to calculate returns on a project – using Net Present Values (NPV)

How to calculate returns on a project – using Net Present Values (NPV)

Businesses have to make investment decisions all the time. Deciding on whether to proceed with a project can be tricky if you are faced with multiple projects with differing profits and timelines. The most useful tool to use in such situations is net present values (NPVs). In an earlier blog,…