Concept
Version 6
Created by Boundless
Disadvantages of the IRR Method
![Disadvantage of IRR](../../../../../../../../../figures.boundless-cdn.com/12100/full/50px-exclusive-investments.jpg)
Disadvantage of IRR
NPV vs discount rate comparison for two mutually exclusive projects. Project A has a higher NPV (for certain discount rates), even though its IRR (= x-axis intercept) is lower than for project B
Source
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