IRR is equal to the discount rate at which NPV equals the total benefits.

The IRR will always exist and be unique for this cash flow.

IRR can be directly compared between projects and added together to make portfolio decisions.

The statistical assumptions behind expected value always hold for rare events.

The impact and probability of extreme events are difficult to quantify, and rare occurrences require large sample sizes to be statistically meaningful.

High-probability events make expected value less accurate than standard deviation.

Expected value overestimates the impact of unlikely events due to regression to the mean.

It requires detailed modeling of tax depreciation schedules.

It cannot distinguish between two projects with identical initial costs but different total NPVs.

It does not consider benefits after the payback period.

It ignores the time value of money.

$37.75 million

$53.07 million

$60.25 million