The Internal Rate of Return for a Project Will Increase

question 19

Multiple Choice

The internal rate of return for a project will increase if:

• A)the required rate of return is reduced.
• B)each cash inflow is moved such that it occurs one year later than originally projected.
• C)the total amount of the cash inflows is reduced.
• D)the initial cost of the project can be reduced.
• E)the salvage value of the project is omitted from the analysis.

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