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Chandler and Joey were having a discussion about which financial model to use for their new business. Chandler supports NPV, and Joey supports IRR. The
Chandler and Joey were having a discussion about which financial model to use for their new business. Chandler supports NPV, and Joey supports IRR. The discussion starts to get heated when Ross steps in and states, Gentlemen, it doesnt matter which method we choose, they give the same answer on all projects. Ross is partially right, since NPV and IRR both reject or both accept the same projects under certain conditions. Explain under what three conditions NPV and IRR will be consistent when accepting or rejecting projects.
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