Which of the following is true of NPV vs IRR

Question

Quizplus · Accepted Answer

NPV is considered more accurate because it takes into account the time value of money and uses a firm discount rate, whereas IRR assumes reinvestment at the same rate of return as the project. Additionally, NPV provides a dollar value, while IRR gives a percentage. Although both metrics require use of a calculator or computer to calculate, NPV is still considered easier to understand because it provides a direct measure of the project's value.

Which of the Following Is True of NPV Vs IRR