Assignment: suggestions for further resources, questions of clarification, or providing context and insight. Avoid simple posts of agreement; if you agree, explain why, and then thoughtfully further the conversation. Post: NPV (Net present value) is the difference between the present value of cash inflows and the present value of cash outflows over a period of time. This can be more reliable however it is a gamble because the inflow of cash can change. IRR (Internal rate of return) is a calculation used to estimate the profitability of potential investments. Potential is exactly what is sounds like potential so it is not confirmed or for sure. Payback - It is the length of time an investment reaches a breakeven point. People and corporations mainly invest their money to get paid back, which is why the payback period is so important. The difference of NPV and IRR is - IRR is useful when comparing multiple projects against each other or in situations where it is difficult to determine a discount rate. NPV is better in situations where there are varying directions of cash flow over time or multiple discount rates. NPV may be better for a multi - national corporation because it provides a better direct measure of the dollar benefit versus an IRR disadvantage is that it does not account for the project size when comparing projects. For example, I watched the Michael Jordan documentary on Netflix and when he made his endorsement with Nike he received I believe $250,000.00 upfront and promised his own sneaker line so he was being paid upfront based off projections or payback approach. The deal was Nike wanted to make off of the investment I believe 3 or 4 million with 3 years because at that time Nike was just a company that specialized in track shoes. In the first year Jordan launched his first pair of shoes they made 126 million so of course this was the smartest investment they made but it was some uncertainty because it could have ended up being a negative. So, this was an assumption investment move which can be risky. It is for sure possible for the different methods to have a different outcome or result in different decisions that is why it is so important for every business decision regarding a projection of some sort to be analyzed detailed because either way it is a risk being taken which is the name of the game when it comes to business decisions being made.