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NPV and DDP preference?

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Wed, 2017-05-03 15:25
Thanh Pham
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I have a question from my university, hope it's ok to ask it here.
 So both NPV and DPP are used to determine the profitability of a project. But what are the advantages/pros of each of them and in what kind of project/condition will NPV be valued more than DPP and vice versa?
 Thank you for any help you can provide.
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Wed, 2017-05-03 15:46
#1
Vladimir Liberzon
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DPP and NPV show different data - a moment when the profit will cover expenses and overall discounted profit. One does not replace another.

I suggest to add IRR to these parameters.

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