tag:blogger.com,1999:blog-6495230762647821938.post8822210601681680656..comments2024-03-11T02:26:37.444-05:00Comments on Treasury Cafe: Poor, Poor NPVDavid Waltzhttp://www.blogger.com/profile/03415644204743030961noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-6495230762647821938.post-17162307541905212192011-09-17T19:14:21.914-05:002011-09-17T19:14:21.914-05:00Maddie,
That's a great point about focusing o...Maddie,<br /><br />That's a great point about focusing on the optimistic case only. Another problem with IRR is that it does not tell us the dollar impact if we run a not-so-rosy scenario. Thanks for the comments!David Waltzhttps://www.blogger.com/profile/03415644204743030961noreply@blogger.comtag:blogger.com,1999:blog-6495230762647821938.post-56126975108119588352011-09-16T11:45:34.035-05:002011-09-16T11:45:34.035-05:00Hi David!
You're right. Too many people use I...Hi David!<br /><br />You're right. Too many people use IRR to make decisions instead of NPV. IRR tends to be used in the most optimistic sense and can be very costly to organizations. Running projections through finance would save and provide a reality check. Great post!maddiehttp://www.thekidsatemyhomework.comnoreply@blogger.com