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If i have to purchase a capital asset which method i should use to calculated capital budgeting NPV or IRR?

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Question added by Rahul Sharma , Project Head & Finance Manager , Rays Power Private Limited
Date Posted: 2013/11/01
Muhammad Sohail Anwar
by Muhammad Sohail Anwar , Finance Manager , The Food Concepts

Id depend on the value of investment the bigger the investment is the multi dimensional analysis for the return on investment is required including cash flow management.NPV and IRR both can be used for capital budgeting.

mukkur srinivasan varadhan
by mukkur srinivasan varadhan , Chartered Accountant , Chartered Accountant in practice

Both are used in capital budgeting.

NPV to find the net cashflow after discounting of the future cash inflows..

IRR to find the the economic rate of return.

احمد محمد عبد الرحمن
by احمد محمد عبد الرحمن , محاسب مالى , عبد البارى للنقل الداخلى

IRR 

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