Simplifying Net Present Value (NPV) and Internal Rate of Return (IRR)

Dimitrios Gourtzilidis
6 min readJun 1, 2024

Net Present Value (NPV) and Internal Rate of Return (IRR) are two of the most widely used methods for evaluating the profitability of investments or projects.

These metrics are essential for both corporate finance and investment analysis, providing insights into the expected profitability and financial viability of potential investments.

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