5. Understanding the NPV profile If mutually exclusive projects with normal cash flows are being analyzed, the net present value (NPV) and internal rate of return (IRR) methods agree always never sometimes Projects W and X are mutuall cts. Their cash flows and NPV profiles are shown as follows NPV (Dollarsl Year Project W Project X 800 $1,000 $1,500 $350 $500 $600 $750 $200 $350 $400 $600 600 Project X 400 4 Project W 200 If the weighted average cost of capital (WACC) for each project is 696, do the NPV and IRR methods agree or conflict? 200 O The methods agree 0 2 4 6 8 10 12 14 16 18 20 COST OF CAPITAL (Percent The methods conflict