Using IRR fails for short investment periods

The project returning 906% is derived based on putting $100 to work on day one, and receiving $1,000 just one year later. A 10x return is an incredible feat on all fronts. The other option however involves investing the same $100 but receiving a consistent albeit slower and lesser payout of $10 annually to perpetuity, yielding a modest 10% annualized return on investment.