Which Statement Best Reflects the Difference Between NPV and IRR

Which statement best reflects the difference between NPV and IRR?

A) Both NPV and IRR will generate the same decisions.
B) NPV considers the time value of money, and IRR does not.
C) NPV is used on one project only and IRR is used when choosing among competing, mutually exclusive projects.
D) NPV measures profitability in absolute terms, whereas the IRR method measures profitability in relative terms.

Correct Answer:

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