Discussion Question(s) #2 Please reply to this thread by or before Friday, day 4 with your answers! • What is capital planning? Why is the internal rate of return important to an organization? Why is net present value important to a project? How would you select from multiple projects presented to your organization? What is capital planning? Capital planning means corporate evaluation of long-term investment proposals, generally by means of discounting estimated future cash flows. Why is the internal rate of return important to an organization? Internal rate of return (IRR) is a measure of the present value of the investment's cash outflows with the present value of the investment's cash inflows, or more specifically, where the two break even. IRR is a critical measurement for an organization's investments because it shows how efficiently or effectively the various investments perform. IRR allows a company - and, by extension, the company's investors - to quickly determine when an investment adds value. IRR is
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