The net present value (NPV) method differs from the internal rate of return (IRR) method in that:

Group of answer choicesthe IRR method provides better conclusions for mutually exclusive projects

the NPV method discounts cash flows using the risk-free rate of return and the IRR method does not.

the IRR method finds the rate of return that gives a project a zero NPV whereas the NPV method discounts the cash flows by the required rate of return

both methods always yield similar conclusions for mutually exclusive projects

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