When evaluating two unique projects that cannot both be chosen, one project shows a higher Internal Rate of Return (IRR) but a lower Net Present Value (NPV) than the other. Which project should a business pick to make the most money, and why?

When evaluating two unique projects that cannot both be chosen, the business should pick the project with the higher Net Present Value (NPV) to make the most money. The primary objective of a business is to maximize shareholder wealth, and NPV directly measures the absolute dollar amount that a project is expected to add to the value of the business. Net Present Value calculates the present value of all expected future cash inflows and subtracts the present value of all expected futu....