The IRR and NPV may yield the same conclusion about a project except:

Question

Quizplus · Accepted Answer

The IRR and NPV may not yield the same conclusion about a project when cash flows are irregular. This is because the IRR assumes that cash flows are reinvested at the same rate which may not be feasible with irregular cash flows. On the other hand, the NPV takes into account the time value of money and can handle irregular cash flows. Therefore, when cash flows are irregular, the two methods may yield different results.

The IRR and NPV May Yield the Same Conclusion About