[Verse 1] Sarah's got two factories on her desk today Widget plant or gadget shop, which one should pay? Both look profitable, numbers seem so bright But only one can claim her million dollar might NPV says gadgets win by twenty grand IRR screams widgets at thirty percent, so grand [Chorus] When projects clash and cannot coexist NPV's the king you can't dismiss Mutually exclusive, pick just one NPV wins when the fighting's done Dollar value beats percentage games NPV's the ruler when resources have claims [Verse 2] Tommy's torn between a mine and shipping dock IRR shows mining beats his hurdle by a block But NPV reveals the dock brings wealth supreme Scale difference tricks the rate, disrupts the dream Reinvestment fallacy haunts IRR's tale Assumes you'll earn that rate without fail [Chorus] When projects clash and cannot coexist NPV's the king you can't dismiss Mutually exclusive, pick just one NPV wins when the fighting's done Dollar value beats percentage games NPV's the ruler when resources have claims [Bridge] Crossover rate's the breaking point you seek Where both methods finally agree and speak Plot the NPVs at discount rates Watch the lines cross, seal both fates Before crossover, big project leads After crossover, small one feeds [Verse 3] Profitability index muddles waters too Divides the NPV by investment due Great for rationing capital tight But mutual exclusion needs different sight Modified IRR can help the cause But NPV still writes the laws [Chorus] When projects clash and cannot coexist NPV's the king you can't dismiss Mutually exclusive, pick just one NPV wins when the fighting's done Dollar value beats percentage games NPV's the ruler when resources have claims [Outro] Remember Sarah's choice between her plants NPV gave her the final chance Gadgets won despite the lower rate Dollar maximization sealed the fate
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