Why?

CFA Level I
#1

NPV and IRR lead to conflicting results when the cost of capital is less than the crossover rate. Why?

#2

if you have schweser page 21 of book 4, (reading 44)

#3

try doing the NPV profiles, thus how i remember it

#4

try drawing the NPV profiles, thus how i remember it

#5

But isn’t that page saying that to the left (less than the cost of capital) Project B has a greater NPV. These don’t seem like conflicting results. I’ve got to be missing something. Thanks

#6

i was looking at page 21 when i wrote this post…they state it but dont explain it

#7

I don’t even see where they’re conflicting when cost of capital is less than the crossover rate. I see that B is the choice to go w/ @ a lower cost of cap. I’m w/ you the show