if a policy A is there with NPV of 5% and IRR of 10% and a policy B is there with NPV 10% and IRR 5% and the discount rate is 12%, then which policy should be chosen by a rational investor?
In the CT1 world we tend to choose the project with the higher NPV - so B (although note the NPVs should be monetary amounts, not %s). In the real world, I expect there would be many other considerations.
