What is an important advantage of the net present value method of capital budgeting over the internal rate-of-return method?

Question

Quizplus · Accepted Answer

The net present value (NPV) method allows for the direct comparison and aggregation of the absolute dollar value benefits of different projects, enabling a clear assessment of the total value added from undertaking multiple projects. This is not possible with the internal rate of return (IRR) method, which is expressed as a percentage and does not directly indicate the scale of the investment's absolute financial return.

What Is an Important Advantage of the Net Present Value