Why do conflicts sometimes arise between the netpresent value (NPV) and internal rate of return(IRR) methods; that is, what conditions can leadto conflicts? Can similar conflicts arise betweenmodified internal rate of return (MIRR) andNPV rankings, or between rankings by the MIRRand IRR methods?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter10: Capital Budgeting: Decision Criteria And Real Option
Section: Chapter Questions
Problem 3QTD
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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 conflicts? Can similar conflicts arise between
modified internal rate of return (MIRR) and
NPV rankings, or between rankings by the MIRR
and IRR methods?

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