NPV & IRRThe two discounted cash flow measures, and when they disagree.Accounting & FinanceNet present value is the sum of discounted cashflows less the initial outlay; accept if positive.NPV = Σ Cₜ/(1+r)ᵗ − C₀NPV > 0AcceptAdds value.IRR > cost of capitalAccept, usuallyMutually exclusive projectsChoose highest NPVTHE COMMON MISTAKE✗ Choosing the higher IRR between exclusive projects✓ Choosing the higher NPVIRR ignores scale. A 40% return on £10,000 adds less value than a 15% returnon £10 million.IRR also assumes reinvestment at the IRR itself, which is rarely realisticfor very high-return projects.NPV & IRRlearnposters.com
NPV & IRR — printable business wall chart from LearnPosters. Free vector PDF, US Letter and A4.

What’s on the NPV & IRR poster

The rule, 3 worked examples, and the mistake everyone makes.

IRR also assumes reinvestment at the IRR itself, which is rarely realistic for very high-return projects.

Questions about the NPV & IRR poster

What’s on the NPV & IRR poster?
The rule, 3 worked examples, and the mistake everyone makes. Net present value is the sum of discounted cash flows less the initial outlay; accept…; NPV = Σ Cₜ/(1+r)ᵗ − C₀; NPV > 0 = Accept; IRR > cost of capital = Accept, usually; Mutually exclusive projects = Choose highest NPV; Common mistake: Choosing the higher IRR between exclusive projects → Choosing the hig…. IRR also assumes reinvestment at the IRR itself, which is rarely realistic for very high-return projects.
Who is the NPV & IRR poster for?
NPV & IRR belongs to the Accounting & Finance section rather than to a school year, because business is not something one grade owns. Anyone learning corporate finance can pin it up — a beginner, a student mid-course, or someone revising years later.
When should you use the NPV & IRR poster?
NPV gives value added. IRR gives a rate. When they conflict, follow NPV. A wall chart earns its place by being glanceable from where the work is happening, so NPV & IRR belongs on the wall where that business work actually happens, within glancing distance, rather than filed away.
What other posters go with NPV & IRR?
Behavioural Finance, Capital Structure and CAPM sit alongside NPV & IRR in the Accounting & Finance section. Printed together they make a wall rather than a single sheet, which is how a reference set actually gets used.Behavioural FinanceCapital StructureCAPM
Is the NPV & IRR poster free to download and print?
Yes. NPV & IRR downloads as a free PDF with no account, no email and no watermark, like everything else in the Accounting & Finance section. Print as many copies as you like for a home, a classroom, a library or a tutoring group; reselling the file is the only thing the licence rules out.Read the licence
What size does the NPV & IRR poster print at?
NPV & IRR is a vector PDF laid out for US Letter, and prints on A4 with Fit to page — the same file, no separate download. Because every mark on it is drawn rather than photographed, it stays sharp enlarged to A3, A2 or A1 at a copy shop. Colour carries emphasis only, so a greyscale print of NPV & IRR loses nothing.Printing guide

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