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

always grad agree.

Projects $W$ and $x$ are mutusly exclusive projects. Their cash flows and NPV profiles are shawn as follows.

If the weighted average cost of capital $($WACC$)$ for each project is $2\%,$ do the NPV and IRR methods agree or canflict?

The methods conflict.

The methods agree.

A key to resolving this conflict is the assumed reimestment rate. The NPV calculation implicitly assumes that intermediate cash flows are reinvested at

the

$,$ and the IRR calculation assumes that the rate at which cash flows can be relinvested is the