, in summation of your discussion net present value calculations require copious amounts of information when reviewing multiple projects. The inability to gather all necessary information or accurate information can weaken this analysis tool. Furthermore, multiple project options with different information may be difficult to analyze. For example, one option may increase sales while another decreases cost. Comparing the information from these two options may result in different answers based on the gathered information. NPV is important because it gives a direct measure of the dollar benefit (on a present value basis) to the firm's shareholders, so we regard NPV as the best single measure of profitability. Based on these assumptions, when evaluating two projects, why would one choose IRR over the NPV approach?