Uses, Abuses, and Alternatives to the Net-Present-Value Rule
financial academics think they have to offer CFOs, corporate treasurers, investment bankers, and practitioners of all stripes. In fact, it is not uncommon to spend a considerable amount of time in class making sure that the student understands all the wrong ways of thinking about investment decision making-from the IRR rule to the payback period. Wrong, of course, because they don't coincide with the NPV rule.