Monica and Rachel are having a discussion about IRR and NPV as a decision model for Monica’s new restaurant. Monica wants to use IRR because it gives a very simple and intuitive answer. Rachel states...

Monica and Rachel are having a discussion about IRR and NPV as a decision
model for Monica’s new restaurant. Monica wants to use IRR because it gives a very simple and intuitive answer. Rachel states that there can be errors made with IRR that are not made with NPV. Elaborate a type of error can be made with IRR but not with NPV.