{"id":12738,"date":"2025-01-17T19:56:36","date_gmt":"2025-01-17T17:56:36","guid":{"rendered":"https:\/\/oficinaeconomicagalicia.xunta.gal\/faqs-ambitos\/how-do-npv-and-irr-differ\/"},"modified":"2025-01-17T19:56:36","modified_gmt":"2025-01-17T17:56:36","slug":"how-do-npv-and-irr-differ","status":"publish","type":"faqs-ambitos","link":"https:\/\/oficinaeconomicagalicia.xunta.gal\/en\/faqs-ambitos\/how-do-npv-and-irr-differ\/","title":{"rendered":"How do NPV and IRR differ?"},"content":{"rendered":"<p>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.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Both Net Present Value (NPV) and Internal Rate of Return (IRR) are tools that allow evaluating the profitability of an investment.<\/p>\n","protected":false},"template":"","categorias":[76,75],"class_list":["post-12738","faqs-ambitos","type-faqs-ambitos","status-publish","hentry","categorias-competitiveness","categorias-financial"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>How do NPV and IRR differ? - Oficina Econ\u00f3mica de Galicia<\/title>\n<meta name=\"description\" content=\"Both Net Present Value (NPV) and Internal Rate of Return (IRR) are tools that allow evaluating the profitability of an investment.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/oficinaeconomicagalicia.xunta.gal\/faqs-ambitos\/en-que-se-diferencian-o-van-e-a-tir\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How do NPV and IRR differ? 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