How to Resolve Conflicts Between Mutually Exclusive Projects with Conflicting IRRs

When faced with a conflict between mutually exclusive projects due to differing IRR values, it's crucial to rely on a more robust metric. While IRR can be helpful, it can sometimes lead to conflicting decisions. In such cases, the most reliable approach is to depend on the Net Present Value (NPV). NPV considers the time value of money and provides a more accurate picture of the overall profitability of a project. It always provides the most value in determining the best investment choice.