Question: Which method do you think is the better one for making capital budgeting decisions - IRR or NPV? A project requiring a $4.2 million investment

Which method do you think is the better one for making capital budgeting decisions - IRR or NPV?

A project requiring a $4.2 million investment has a profitability index of 0.94. What is its net present value? (Remember: Profitability Index is defined as Present Value of the proceeds divided by the initial investment)

Part 2.

Read the article below. Then write a one-to-two page paper answering the following question:

Which method do you think is the better one for making capital budgeting decisions - IRR or NPV?

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