The Net Present Value method of project evaluation is preferred over the Internal Rate of Return method because the Net Present Value method:
a-Considers the time value money where IRR does not.
b-Considers the risk of the project where the Internal Rate of Return does not.
c-Includes all the cash flows in its decision where IRR does not.
d-Considers the timing of the cash flows where the Internal Rate of Return does not.
e-Assumes a more realistic reinvestment rate assumption than IRR.