NPV and DDP preference?

T
Thanh Pham 👤 Member for 9 years 1 month

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.

V
Vladimir Liberzon 👤 Member for 25 years 4 months

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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