Prints company is a medium-sized commercial printer of promotional
The pros and cons of each technique depend on what type of information you have available when making your decision. NPV provides a comprehensive evaluation because it takes into account future cash flows and their associated risks; however, this detailed analysis also requires complex calculations that may be difficult for some users to understand or interpret properly. Additionally, if there are changes in interest rates or other variables during the evaluation period then NPV results can become less accurate over time. IRR is simpler since it focuses solely on ROI rather than accounting for future cash flows; however, its accuracy relies heavily on assumptions about future returns which could lead to inaccurate results if those assumptions are wrong. Additionally, like NPV evaluations, IRR evaluations may need to be re-evaluated periodically if there are changes in external factors such as interest rates or inflation rates that affect expected returns from investments. Ultimately, both methods provide useful data points but should be considered together in order to make informed decisions about potential investments.