When applied to the analysis of independent projects, NPV and IRR never provide conflicting accept or reject decisions.

Question

Quizplus · Accepted Answer

NPV and IRR always give the same accept or reject decision for independent projects. If the NPV is positive and the IRR is greater than the required rate of return, the project should be accepted. If the NPV is negative and the IRR is less than the required rate of return, the project should be rejected.

When Applied to the Analysis of Independent Projects, NPV and IRR