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if c cant be read: c. Why do IRR and NPV rank the two projects differently? NPV and IRR rank two projects differently because they
if c cant be read:
c. Why do IRR and NPV rank the two projects differently?
NPV and IRR rank two projects differently because they are measuring different things. NPV OR IRR (choose one) is measuring value creation, while NPV OR IRR (choose one) is measuring return on investment. because returns do not scale with different levels of investment, the two measures may give different rankings when the initial investments are different.
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