Respond to the prompt above in a minimum of 175 words: NPV and IRR are the most frequently used calculations I have seen regarding capital expenditures. Managers especially pay attention to the IRR percentage. It helps them to compare projects and is easily understood. The higher the percentage the more profitable the project. Or, if the project is 2% IRR and the company can invest their money for 4% interest - should they do the project? I once worked for a company that used its excess funds for investing as opposed to projects. In essence, we followed the scenario I described above. We could make more money investing than the IRR on proposed projects. Was that a mistake?