Please the below topic in detail.?

Question

“NPV method is superior than IRR, for assessing the financial viability of a capital investment project.”

Answer 1

Because

1. It correctly identify a better project among mutually exclusive projects of different scale, time duration and risk

2. It can handle abnormal cash flows (with more than one change of signs)

For non mutually exclusive projects with normal cash flows these two methods lead to the same decisions.