The document discusses conflicts that can arise between the net present value (NPV) and internal rate of return (IRR) methods when evaluating mutually exclusive investment proposals. It notes that the NPV of one proposal may be positive while the IRR favors a different proposal, due to differences in cash flow patterns, project sizes, or lifetimes. The document recommends that in cases of conflict between NPV and IRR, one should select the proposal with the largest positive NPV, since that option best maximizes shareholder wealth, which should be the firm's objective.