The NPV and IRR methods, when used to evaluate an independent project, will lead to different accept/reject decisions unless the IRR is greater than the cost of capital.

Question

Quizplus · Accepted Answer

The NPV and IRR methods will generally lead to the same accept/reject decision for independent projects, as both methods consider the cost of capital. If the IRR is greater than the cost of capital, both methods will typically suggest accepting the project.

The NPV and IRR Methods, When Used to Evaluate an Independent