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[Series 65] 11, NPV IRR and Internal Rate of Return

[Series 65] 11, NPV IRR and Internal Rate of Return

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This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: - The Net Present Value (NPV) decision rule: Accept projects with a positive NPV and reject those with a negative NPV. - The Internal Rate of Return (IRR) decision rule: Accept projects where the IRR is greater than the required rate of return or hurdle rate. - For the Series 65 exam, NPV is considered the superior capital budgeting method, especially for comparing mutually exclusive projects. - Exam questions test your understanding of the decision rules and the relationship between variables, not complex calculations. - A key mnemonic: "IRR Greater, Go!"—if the IRR is greater than the required rate, accept the project. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep
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