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LaTeX Math Block
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\mbox{NPV} = \sum_{i=0}^n \frac{R_{t_i}}{(1+\mbox{IRR})^{t_i}} = 0


The usual practise is to compare give preferences to the investment projects with higher IRR and make a direct comparison of IRR against the Weighted Average Cost of Capital (WACC).

See also

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Economics / Investment / Financial Investment / Cash Discount

Weighted Average Cost of Capital (WACC) ]