NPV with Only Costs & IRR


 
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NPV with Only Costs & IRR
Tom Loxton
Hi, I have been posed with the problem of trying to calculate an NPV, with only costs provided and an IRR. Additionally, costs are not incurred upfront, but by borrowing over each period at a given rate. Would it be incorrect to go ahead and use the IRR to estimate what the net cash inflows would be based on the cash outflows? So Cost * (1 + IRR) = estimated cash inflow.
Otherwise any input on techniques is appreciated!
 

 
NPV Use for Investment Criteria
Management Fan, Analyst, Philippines, Member
There should be an incremental cash inflows (future inflows) since you will evaluating the value of such future net cash inflows over pulling the valu...Sign up
 

   

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