The net present value's primary advantage over the internal rate of return method is that it does not require the time value of money calculations that the internal rate of return requires.

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The primary advantage of the net present value (NPV) method over the internal rate of return (IRR) method is that NPV can handle multiple discount rates more effectively, not that it avoids time value of money calculations. Both NPV and IRR require the time value of money calculations to evaluate investments.

The Net Present Value's Primary Advantage Over the Internal Rate