Conflicting rankings in the case of mutually exclusive projects using NPV and IRR often results from differences in the magnitude and/or timing of cash flows.

Question

Quizplus · Accepted Answer

Conflicting rankings between NPV and IRR can occur when the cash flows of mutually exclusive projects are different in terms of their magnitude or timing. This is because each method values cash flows differently and makes different assumptions about reinvestment rates.

Conflicting Rankings in the Case of Mutually Exclusive Projects Using