If the net present value method and the internal rate of return method yield contradictory results, the latter should be followed rather than the former.

Question

Quizplus · Accepted Answer

The Net Present Value (NPV) method is generally considered more reliable because it provides an absolute measure of profitability in currency terms, whereas the Internal Rate of Return (IRR) method provides a relative rate of return without considering the scale of the investment.

If the Net Present Value Method and the Internal Rate