Using net present value (NPV) analysis, a manager can select those projects that will maximize the present

Question:

Using (NPV) analysis, a manager can select those projects that will maximize the present value of future cash flows. NPV analysis is a powerful tool; however, surveys of current practice indicate that the (IRR) method enjoys considerable popularity among decision makers. What would account for IRR’s appeal? What are the drawbacks to using only the IRR method to rank projects?

Net Present Value
What is NPV? The net present value is an important tool for capital budgeting decision to assess that an investment in a project is worthwhile or not? The net present value of a project is calculated before taking up the investment decision at... Internal Rate of Return
Internal Rate of Return of IRR is a capital budgeting tool that is used to assess the viability of an investment opportunity. IRR is the true rate of return that a project is capable of generating. It is a metric that tells you about the investment...