(Answered) This question basically asks you to compare the net present

Economics

This question basically asks you to compare the Net Present Value (NPV) to the Internal Rate of return (IRR) on the time length of an investment project.

a. Draw a "growth curve" for a investment project on a log P V t space and interpret itís meaning. b. On your graph show the optimal investment time under the NPV criterion

c. Show the same for the IRR criterion

d. In general when do you prefer IRR over NPV?

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