The Internal Rate of Return for a Project Will Increase

question 58

Multiple Choice

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

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

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