No conflict will exist between the NPV and IRR methods, when used to evaluate two equally risky but mutually exclusive projects, if the projects' cost of capital exceeds the rate at which the projects' NPV profiles cross.

Question

Quizplus · Accepted Answer

When the cost of capital exceeds the crossover rate, both NPV and IRR will agree on the project selection, as both will favor the project with the higher NPV at that cost of capital.

No Conflict Will Exist Between the NPV and IRR Methods