[Verse 1] When you've got two projects but can only pick one Mutually exclusive means just one gets done Can't do both together, gotta make a choice Let the numbers guide you, let the math be your voice NPV will tell you value added today IRR shows the return rate along the way But sometimes they conflict, pointing different directions Need to know the right rules for project selections [Chorus] NPV is king when projects clash It shows the wealth, the added cash If NPVs are both positive, pick the higher one That's the project battle won Remember this golden rule so true NPV decides what you should do [Verse 2] IRR can be misleading when you're choosing between Higher rate doesn't always mean the better machine Scale and timing matter, size affects the game A smaller project's higher rate might not stake its claim Crossover rate is where the NPVs meet At discount rates below, the rankings compete Above that crossover, NPV rankings flip Understanding this will help you make the trip [Chorus] NPV is king when projects clash It shows the wealth, the added cash If NPVs are both positive, pick the higher one That's the project battle won Remember this golden rule so true NPV decides what you should do [Bridge] Profitability index helps when capital's tight Dividing NPV by investment gives insight But for mutually exclusive, stick to the plan NPV maximizes wealth across the span [Verse 3] Payback period's simple but it has its flaws Ignores cash flows beyond, breaks decision laws Modified IRR tries to fix the IRR mess But NPV remains the gold standard for success When reinvestment rates and project scales differ NPV cuts through confusion, makes the picture clearer Don't let conflicting signals lead you astray NPV maximization shows the better way [Chorus] NPV is king when projects clash It shows the wealth, the added cash If NPVs are both positive, pick the higher one That's the project battle won Remember this golden rule so true NPV decides what you should do [Outro] Mutually exclusive means you pick just one NPV will guide you till the choice is done Highest net present value wins the race That's how smart investors allocate their space
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