How to measure the effectiveness of investments: criticism of the arguments of Pierre Masse

Abstract

The article deals with issues related to measuring the effectiveness of investments. In the paper, two criteria for measuring investment efficiency were studied: IRR (Inner Rate of Return) - internal rate of return and NPV (Net Profit Value) - discounted total profit. It shows the unfoundedness of the recommendations of the French economist Pierre Masset about the advantage of the NPV test before the IRR. It seems to us that at present, in the context of the deployment of a nationwide digital economy program, the study of the effectiveness of investments becomes particularly relevant.