What Will Result from an Increase in the Risk-Adjusted Discount

question 37

Multiple Choice

What will result from an increase in the risk-adjusted discount rate for a risky project?

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

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Definitions:

Dividend Yield

The ratio of a company's annual dividends to its current share price, represented as a percentage.