The Internal Rate of Return for a Project Will Increase

question 3

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 salvage value of the project is omitted from the analysis.

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