Comparing these two scenarios against one another, you will notice that the MOIC is less than half in the second scenario, but the IRR for the cash flows suggests little has changed. It goes to show that an investment’s time horizon is the reason that both of these metrics should always be considered when evaluating performance.
To take the point a step further, imagine if in year 201 the investment lost 99% of its value. How drastic would you expect the difference to be in the event that an investment’s value is all but wiped out? A 99% loss in year 201 after growing at 6.7% for the prior 200 years would result in an internal rate of return of 4.25% for the entire investment period. In stark contrast, the value of the investment would be $429,422 versus $45,819,285 had it just continued to grow at 6.7% in year 201 (download the template if you would like to make this change yourself).