If used correctly,NPV and IRR techniques will generally lead to the same decision.

Question

Quizplus · Accepted Answer

Both NPV and IRR techniques are methods of evaluating the potential profitability of an investment. While they use different calculations and measures, if used correctly, they should generally lead to the same investment decision. However, there may be some situations where they lead to different conclusions, such as when there are non-conventional cash flows or when comparing projects with different scales or timing.

If Used Correctly,NPV and IRR Techniques Will Generally Lead to the Same