NPV or IRR? Why the two can rank your projects in opposite order
For a small-business owner choosing between two mutually exclusive investments when IRR puts one first and NPV the other. A worked example, calculated exactly and invented throughout, shows where the ranking flips, how IRR can give two answers, and what NPV leaves out.
#net-present-value#internal-rate-of-return#payback-period#capital-budgeting#investment-decision
