04-21-2011, 06:00 AM
Discussion Question
Usually NPV and IRR techniques of project evaluation leads to the same ranking for given projects and make the decision to undertake project relatively simple. But sometimes it does happen that a ranking conflict arises by using both techniques i.e. both techniques provide contradictory ranking of given projects.
You are required to discuss the circumstances when NPV and IRR lead to a ranking conflict for two projects?
Your answer should be relevant and should not exceed 4 to 5 lines.
Usually NPV and IRR techniques of project evaluation leads to the same ranking for given projects and make the decision to undertake project relatively simple. But sometimes it does happen that a ranking conflict arises by using both techniques i.e. both techniques provide contradictory ranking of given projects.
You are required to discuss the circumstances when NPV and IRR lead to a ranking conflict for two projects?
Your answer should be relevant and should not exceed 4 to 5 lines.