NPV and IRR can lead to different decisions in situations where project cash ﬂow are conventional.

Name: NPV and IRR can lead to different decisions in situations where project cash ﬂow are conventional.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

In conventional cash flow situations, where there is an initial outflow followed by a series of inflows, both NPV and IRR typically lead to the same decision regarding project acceptance. Discrepancies usually arise in non-conventional cash flow situations.

NPV and IRR Can Lead to Different Decisions in Situations