Discounted Cash Flow vs IRR

Discounted Cash Flow vs IRR

See Also:
Net Present Value versus Internal Rate of Return
Discounted Cash Flow Analysis
Internal Rate of Return Method
Net Present Value Method
Free Cash Flow Analysis

Discounted Cash Flow vs IRR Explanation

A lot of people get confused about discounted cash flow vs IRR and its relation or difference to the net present value (NPV) and the internal rate of return (IRR). In fact, the internal rate of return and the net present value are a type of discounted cash flows analysis. Both the NPV and the IRR require taking estimated future payments from a project and discounting them into the Present Value (PV). The difference in short between the NPV and the IRR is that the NPV shows a project’s estimated return in monetary units and the internal rate of return reveals the percentage return needed to break even. In fact, the IRR is the return needed for the NPV to hit 0. Further analysis of the difference between the NPV vs IRR can be found in the article NPV vs IRR.
If you want tips on how to manage your cash flow, then click here. You can also access our 25 Ways to Improve Cash Flow whitepaper here.
discounted cash flow vs irr

Strategic CFO Lab Member Extra
Access your Cash Flow Tuneup Execution Plan in SCFO Lab. This tool enables you to quantify the cash unlocked in your company.
Click here to access your Execution Plan. Not a Lab Member?
Click here to learn more about SCFO Labs

discounted cash flow vs irr
Strategic CFO company logo with slogan.

Transform your finance operations with NearSourcing™ Accounting Solutions

and see the benefits firsthand with a
FREE Consultation Session.

Share This Article
Top Articles
Categories

THE ART OF THE CFO®

Financial Leadership Workshop

Days
Hours
Min

August 7-10th, 2023

Innovative CFO logo, "Creating Success Through Financial Leadership" slogan.

Empower your business with NearSourcing™ Accounting Solutions

and take advantage of expert financial strategies at reduced costs

Related Blogs
Scroll to Top
WIKICFO® - Browse hundreds of articles
Skip to content