For example, assume that you are considering whether to invest $1 million in a project (A) with an IRR of 20% and an NPV of $200,000 or to invest $10,000 in an alternative project (B) with an IRR of 100% and an NPV of $10,000. The IRR rule would lead us to choose project B (higher return). However, life experience (reality) tells us that project A (more money) is that preferable alternative All else being equal, it is better to achieve significant wealth than significant returns. NPA correctly leads us to this conclusion and, accordingly, creates behavior that we believe is more in line with true shareholder objectives..