Explain why the NPV is a more accurate measure than IRR when evaluating the financial profitability of a project.

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter12: Capital Investment Analysis
Section: Chapter Questions
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Explain why the NPV is a more accurate measure than IRR when evaluating the financial profitability of a project.

 

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