Net present value and internal rate of return always rank projects in the same order when conducting a project evaluation on mutually exclusive investments.

Question

Quizplus · Accepted Answer

Net present value (NPV) and internal rate of return (IRR) can sometimes rank projects differently due to differences in the distribution of cash flows over time and the scale of the investments. This discrepancy is known as the NPV-IRR conflict.

Net Present Value and Internal Rate of Return Always Rank