Question: Why do conflicts sometimes arise between the net present value (NPV) and internal rate of return (IRR) methods; that is, what conditions can lead to

Why do conflicts sometimes arise between the (NPV) and (IRR) methods; that is, what conditions can lead to conflicts? Can similar conflicts arise between modified (MIRR) and NPV rankings, or between rankings by the MIRR and IRR methods?

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As discussed above the NPV assumes that cash flows can be reinvested at the WACC whereas the IRR ass... View full answer

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