6. Understanding the NPV profile It an independent project with conventional, or normal, cash lows is being analyzed, the net present Value (NPV) and internal rate of return (IRR) methods agree Projects Y and Z are mutually exclusive projects. Their cash rows and NPV profites are shown as follows. Year 0 1 Project Project 2 - $1,500 - $1,500 1200 3900 $100 3600 5600 5.300 $1,000 5200 2 3 NPV Dollars) 800 600 Project Y 400 Project 2 200 D -200 0 2 4 6 8 10 12 14 16 18 20 COST OF CAPITAL (Percent if the weighted average cost of capital (WACC) for each project is 6%, do the NPV and IRR methods agree or connict? The methods agree. The methods conflict