The Net Present Value Method is a more conservative technique for selecting investment projects than the Internal Rate of Return method because the NPV method:

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The Net Present Value (NPV) method discounts cash flows at the firm's weighted average cost of capital, which takes into account the cost of financing the project. This makes it a more conservative technique compared to the Internal Rate of Return (IRR) method, which assumes that cash flows can be reinvested at the project's internal rate of return. The NPV method also considers all cash flows throughout the life of the project, whereas the IRR method only looks at the time it takes to recover the initial investment. Therefore, the NPV method is a more accurate measure of the profitability of an investment project, making it a more conservative approach.

The Net Present Value Method Is a More Conservative Technique