A project with conventional cash flows has been determined to be profitable and should be funded. The company has the option to increase the size of the project by 20 percent. If it does so, the initial outlay and aftertax cash inflows will rise by 20 percent. Assuming the company opts to increase the project's size, the project's net present value most likely will:

a. increase and its IRR will increase.

b. increase and its IRR will stay the same.

c. stay the same and its IRR will stay the same.