When applied to the analysis of independent projects,NPV and IRR never provide conflicting results.

Question

Quizplus · Accepted Answer

NPV and IRR are both methods for evaluating the profitability of independent projects and are based on the same underlying principles. While they may give different results in certain cases, they will never conflict with each other in terms of project acceptability or ranking. Therefore, it is possible to use both NPV and IRR to make informed investment decisions.

When Applied to the Analysis of Independent Projects,NPV and IRR