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Net Present Value (NPV), Internal Rate of Return (IRR), Payback Period, and Sensitivity Analysis are fundamental tools in financial decision-making and investment appraisal. NPV measures the value of future cash flows discounted to the present, IRR identifies the rate of return at which NPV equals zero, Payback Period calculates the time required to recover an investment, and Sensitivity Analysis tests how changes in key assumptions affect project outcomes.
This lecture is part of FIN 408 PROJECT EVALUATION in the Banking and Finance department. The course has 29 recorded lectures across 10 series, all free to watch. Read or download the FIN 408 lecture note to study alongside the video.