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.
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