[Verse 1] When projects come knocking at your door You need to know which ones are worth much more Cash flows coming in and going out NPV will remove all doubt Discount future money to today Time value shows us the true way [Chorus] NPV positive means we say yes IRR greater than cost we're blessed Net Present Value tells the tale Internal Rate will never fail When NPV is more than zero IRR's your investment hero [Verse 2] Take your discount rate and calculate Future cash flows can't afford to wait Sum them up and subtract initial cost If it's negative then value's lost But if the number's in the black Your investment's right on track [Chorus] NPV positive means we say yes IRR greater than cost we're blessed Net Present Value tells the tale Internal Rate will never fail When NPV is more than zero IRR's your investment hero [Bridge] IRR's the rate that makes NPV zero Find that percentage be the hero If it beats your hurdle rate Accept the project don't be late Mutually exclusive choose the higher NPV Different scale projects use PI [Verse 3] When cash flows are unconventional Multiple IRRs are dimensional NPV remains reliable IRR can be undeniable Reinvestment rate assumptions Lead to different consumption [Chorus] NPV positive means we say yes IRR greater than cost we're blessed Net Present Value tells the tale Internal Rate will never fail When NPV is more than zero IRR's your investment hero [Outro] Capital budgeting made clear Both methods working year by year NPV and IRR together Guide decisions through any weather
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