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If the required rate of return for a project increases from 10% to 12%, the impact on the IRR and the NPV would be: a.
If the required rate of return for a project increases from 10% to 12%, the impact on the IRR and the NPV would be:
a. IRR would increase and NPV would decrease
b. IRR would stay the same and NPV would decrease
c. IRR would stay the same and NPV would increase
d. IRR would increase and NPV would increase
e. None of the above
It was said that IRR would stay the same. Please explain why, and please explain why NPV would either increase or decrease.
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