4) This technique implies the utmost rates out of return and provide an excellent rather wise decision regarding the earnings of your own opportunity, inside its lack of the fresh new firm’s cost of financing.
3) It might yield abilities inconsistent towards NPV strategy, should your enterprise differs inside their asked lifetime or cash outlays, timing of money flows.
4) They ensures that the fresh new intermediate cash inflows produced by your panels is reinvested, in the internal rate of one’s opportunity, while the brand new NPV means means bucks inflows try reinvested within the newest company’s cost of capital. Continue reading “This may produce a bad price or multiple rates lower than specific points”