Category Archives: Articles

When to use NPV, IRR or MIRR

What is Capital Budgeting? Capital budgeting is the process of allocating capital after determining project feasibility. Determining project feasibility is a 3 part process: Step 1] Qualitative Analysis – Relationship/Branding feasibility, Socio-Cultural & Political feasibility Step 2] Forecasting Performance – Financial Modeling & Structural analysis (Most critical!) Step 3] Quantitative Analysis –IRR (or MIRR), NPV, Payback… Read More »

Inflation/Deflation

Over the next decade, the critical element in any investment portfolio will be the correct call regarding inflation or its antipode, deflation. Despite near term deflation risks, the overwhelming consensus view is that “sooner or later” inflation will inevitably return, probably with great momentum. This inflationist view of the world seems to rely on two… Read More »