Answer:
Trial and error method of IRR/Using or
NPV
Explanation:
Financial Managers can use Net Present value because it is one of the most influential capital budgeting measurement to know the company's cost. It shows that whether the company covers the initial cost or with the help of the present value of future cash flows.
On the other hand, with the help of cash flows, financial manager can also find the IRR. He can use Excel to get the IRR or use Trial and error method to get the Expected IRR.
Excel: =IRR(Cashflow1:CashflowN)
Trial and Error:
Lowest rate + (NPV at lowest rate/Present value of lowest rate - present value of highest rate) × (Highest rate - Lowest rate)
