In this course, you’ll learn the basic fundamentals of corporate finance. Based on the pre-term qualifying courses for Wharton MBA students, Professor Jessica Wachter has designed this course for learners who need a refresher in financial concepts, or for those who are learning about corporate finance for the first time. You’ll identify foundational concepts in corporate finance, such as NPV, Compound and Simple Interest, and Annuities versus Perpetuities. You’ll also learn how to apply the NPV framework to calculating fixed-income valuation and Equity, using hypothetical examples of corporate projects. By the end of this course, you’ll have honed your skills in calculating risk and returns to optimize investments, and be able to assess the right set of financial information to achieve better returns for your firm.
Comparing NPV and IRR: Accept or Reject Decision (9:34)
Reviews
3.9 (431 ratings)
Feb 6, 2021
Quote comprehensive but the solution to quiz questions should be provided in order to know the correct way of solving and approaching the question
Sep 6, 2021
this is an excellent course. i personally suggest everyone to go through this course once on starting career in finance
From the lesson
Module 4 - NPV vs. Internal Rate of Return
This module was designed to show you the difference between NPV and Internal Rate of Return (IRR). You’ll first explore both Internal Rate of Return and how it compares to the NPV, then debunk some of the common assumptions about IRR that may seem unrealistic when examined closely. Using hypothetical examples of projects, you’ll compare the values of NPV and IRR and what to do when they agree or disagree with each other. By the end of this module, you’ll gain a better understanding of the difference between NPV and IRR, plus be able to determine when to make the critical call on which value to accept or reject when making important decisions within your firm.
Taught By
Jessica Wachter
Dr. Bruce I. Jacobs Professor in Quantitative Finance
Explore our Catalog
Join for free and get personalized recommendations, updates and offers.
Coursera Footer
