If the Discount Rate Is Decreased from 9% to 7%,what

question 143

Multiple Choice

If the discount rate is decreased from 9% to 7%,what will happen to the internal rate of return (IRR) of a project?

• A)IRR will always increase.
• B)IRR will always decrease.
• C)The discount rate change will not affect IRR.
• D)We cannot determine the direction of the effect on IRR from the information provided.