If two projects are mutually exclusive,then the IRR is more important than the NPV in deciding the project that should be chosen.

Question

Quizplus · Accepted Answer

NPV is generally considered more reliable than IRR for evaluating and comparing mutually exclusive projects because it measures the absolute value of the investment's return, taking into account the project's scale and the cost of capital, whereas IRR can give misleading signals when comparing projects of different sizes and durations.

If Two Projects Are Mutually Exclusive,then the IRR Is More