Both Net Present Value (NPV) and Internal Rate of Return (IRR) are tools that allow evaluating the profitability of an investment. The difference lies in the nature of the information they provide: NPV indicates the profitability of the investment (not profitable if NPV is negative, does not generate profit if it is 0, or profitable if it is positive) and allows comparing different alternatives. The IRR is the value of the interest rate at which the NPV becomes 0. Thus, if the offered interest rate is higher than the IRR, the investment is profitable. If it is equal, it does not generate profits; and if it is lower, it will generate losses.
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