Question: Chandler and Joey were having a discussion about which financial
Chandler and Joey were having a discussion about which financial model to use for their new business. Chandler supports NPV and Joey supports IRR. The discussion starts to get heated when Ross steps in and states, “Gentlemen, it doesn’t matter which method we choose, they give the same answer on all projects.” Is Ross correct? Under what conditions will IRR and NPV be consistent when accepting or rejecting projects?
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