Your question is NPV Versus IRR in Capital Allocation. Take a moment with it on the right.
Talk me through your thinking if you like. When you're confident, submit your answer and I'll grade it like a real screen (7/10 or better passes).
You're advising a finance team that regularly evaluates equipment and capacity investments. Leadership wants a clear way to compare projects that differ in scale, timing of cash flows, and risk, especially when some projects improve efficiency while others expand output.
What is the difference between NPV and IRR, and under what circumstances would you prioritize one over the other when evaluating a project?