The finance department of a large corporation has evaluated apossible capital pr

The finance department of a large corporation has evaluated apossible capital project using the NPV method the Payback Methodand the IRR method. The analysts are puzzled since the NPVindicated rejection but the IRR and Payback methods both indicatedacceptance. Explain why this conflicting situation might occur andwhat conclusions the analyst should accept indicating theshortcomings and the advantages of each method. Assuming the datais correct which method will most likely provide the most accuratedecisions and why?