If you have ever had to decide between different financial options or make financial decisions, you will probably have encountered terms like Net present value (NPV) and Internal Rate of Return (IRR). Although these concepts can seem deceptively simple on initial encounter, there are actually many pitfalls and restrictions to watch out for.

For example, did you know that you cannot use NPV where initial investment amounts are not the same, or for two projects with different lifespans?

IRR also has some major limitations that should not be ignored (such as issues with multiple cash flow sign changes and large early cash flows).

The guide includes:

• Step-by-step guides for both cost comparison and profitability analysis
• A comprehensive list of financial evaluation metrics with equations as well as the equivalent Excel formulas (such as payback period, return on investment, net cash flow or NCF, NPV, IRR, excess present value index or EPVI, unacost and modified IRR or MIRR)
• Definitions of terms and symbols
• Three worked examples that show you how to use the Step-by-Step Guide, ranging from Easy to Hard

Don't base your next important financial decision for your business or technology on the wrong metrics. Download the free Financial Evaluation Step-by-Step Guide and get it right first time.