When comparing the net present value [NPV] method with the internal rate of return [IRR] method, NPV considers the time value of money, but IRR does not.

Question

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Both NPV and IRR methods consider the time value of money in evaluating investment projects. NPV calculates the present value of cash flows, while IRR finds the discount rate that makes the NPV of cash flows equal to zero.

When Comparing the Net Present Value [NPV] Method with the Internal