NPV tại 10% 9,01 24,90 USD sự khác biệt trong bảng xếp hạng giữa hai phương pháp này là gây ra các giả định tỷ lệ tái đầu tư của các phương pháp. Phương pháp IRR giả định dòng tiền của dự án A $ 120 được tái đầu tư 20% cho 4 năm tiếp theo và phương pháp NPV giả định $ 120 là tái đầu tư ở mức 10%. | 194 MONETARY APPROACH EXAMPLE 78 Assume the following Cash Flows Year Projects 0 1 2 3 4 5 A 100 120 B 100 Computing IRR and NPV at 10 gives the following different rankings Projects IRR NPV at 10 A 20 B 15 The difference in ranking between the two methods is caused by the methods reinvestment rate assumptions. The IRR method assumes Project A s cash inflow of 120 is reinvested at 20 for the subsequent 4 years and the NPV method assumes 120 is reinvested at 10 . The correct decision is to select the project with the higher NPV Project B since the NPV method assumes a more realistic reinvestment rate that is the cost of capital 10 in this example . To calculate Project A s MIRR first compute the project s terminal value at a 10 cost of capital. 120 T1 10 4 years 120 X Next find the IRR by setting 100 T3 MIRR 5 years T3 100 which gives MIRR about 12 Now we see the consistent ranking from both the NPV and MIRR methods as shown above. Note Microsoft Excel has a function MIRR values finance_rate reinvest_rate . See also INTERNAL RATE OF RETURN NET PRESENT VALUE. MONETARY APPROACH See ASSET MARKET MODEL. MONETARY ASSETS AND LIABILITIES See MONETARY BALANCE. MONETARY BALANCE Monetary balance refers to minimizing accounting exposure. It involves avoiding either a net receivable or a net payable position. If an MNC had net positive exposure more monetary assets than liabilities it could use more financing from foreign monetary sources to balance things out. MNCs with assets and liabilities in more than one foreign currency may try to MONETARY BALANCE 195 reduce risk by balancing off exposure in the different countries. Often the monetary balance is practiced across several countries simultaneously. Monetary assets and liabilities are those items whose value expressed in local currency does not change with devaluation or revaluation. They are listed in Exhibit 80. EXHIBIT 80 Monetary Assets and Liabilities Monetary Assets
