An Increase in the Risk-Adjusted Discount Rate for a Risky

question 42

Multiple Choice

An increase in the risk-adjusted discount rate for a risky project will result in which of the following?

• A) no change to the NPV
• B) an increase in the IRR
• C) an increase in the NPV
• D) a decrease in the NPV

---

Definitions:

Antihistamines

Medications that block the action of histamine, a substance in the body that causes allergic symptoms like itching, sneezing, and runny nose.

Cholesteatoma

An abnormal, noncancerous skin growth in the middle ear or mastoid region, which can erode bones of the middle ear.

Otolith

Small calcium carbonate crystals in the inner ear that assist with balance and spatial orientation.

Cerumen

The medical term for earwax, a substance produced in the outer ear canal to protect and clean the ear.