Question: Why is the NPV considered to be theoretically superior to all other capital budgeting techniques? Reconcile this result with the prevalence of the use of

Why is the NPV considered to be theoretically superior to all other techniques? Reconcile this result with the prevalence of the use of IRR in practice. How would you respond to your CFO if she instructed you to use the IRR technique to make decisions on projects with cash flow streams that alternate between inflows and outflows?

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