1. The Droom project has all positive cash flows for all 7 years of its life.Its discounted pay-back period is 5.5 years, and undiscounted pay-back period is 5 years.

   If the cost of project's investment (at time zero) declines from $1000 to $900, then what is true?

   I. The project's NPV will increase

   II. The project's IRR will increase

   		None of the Above
   		I and II
   		II only
   		I only
   		Cannot answer about I and II without additional information.