NPV & IRR
Exam 3 review · 14 min read + video
Compute NPV and IRR, turn a quarterly IRR into an annual rate, and know which rule to trust when they disagree.
Inside this lesson · 14 min
- Why this matters
- The core idea
- The formula
- Worked example 1: NPV and IRR of a dental scanner
- Worked example 2: quarterly cash flows to an effective annual rate
- Your turn
- Calculator steps
- Common mistakes
- Quick check
- Key takeaways