Corporate Finance Q62

0. Two mutually exclusive projects have conventional cash flows, but one project has a larger NPV while the other has a higher IRR. Which of the following most likely explains this conflict?

  • Option : C
  • Explanation : Conflicts between the NPV decision and IRR are due to the scale/size of the project or the different cash flows pattern. Since the size is the same the difference in cash flows will cause the conflict.
Cancel reply

Your email address will not be published. Required fields are marked *


Cancel reply

Your email address will not be published. Required fields are marked *