One of the arguments in favour of the net present value is that it tells exactly the "return" on a capital project.

Question

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Net Present Value (NPV) measures the difference between the present value of cash inflows and outflows over a period of time, but it does not directly provide the "return" rate on a project. Instead, it indicates the project's value in terms of today's dollars, showing whether a project is expected to generate more value than its cost. The Internal Rate of Return (IRR) is the metric that specifically calculates the project's return rate.

One of the Arguments in Favour of the Net Present