NPV or IRR? Why not both?

The primary criteria used by the mining industry to judge the merit of a project is internal rate of return (IRR) rather than net present value (NPV), although NPV is favored by academicians. This paper discusses the problems of IRR and NPV and compares the multigoal nature of the decision¬makers and their need for informa¬tion having the characteristics of NPV and IRR. The conclusions reached are that both NPV and IRR can be used for investment ranking, that NPV suffers the same multiple root problem as does IRR, and the use of conventional incremental IRR to reach NPV¬consistent project ranking is mis¬leading.