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Forums › ACCA Forums › ACCA MA Management Accounting Forums › IRR NVP
“Decision taken whether to accept or reject a proposal will not be same in IRR and NVP when cash flows are not conventional.” What is meant by this statement. What are conventional and unconventional cash flows ?
anon39: That is not true – NPV certainly does not assume constant cash flows!!!
alikhakar: Conventional means an outflow followed by a series of inflows. An example of non-conventional is where there is an outflow, then an inflow, and then an outflow.
Thanx alot