The internal rate of return (IRR) is a measure of the return earned by an investor provided they hold the asset to maturity and are able to reinvest all intermediate cash flows in an asset that earns a similar return (the reinvestment rate assumption). Would the IRR change if the cost of capital (WACC) for a firm changed?

A. Yes, there is a direct relationship between IRR and cost of capital

B. No, there is an indirect relationship between IRR and cost of capital

C. Yes, there is an indirect relationship between IRR and the cost of capital.

D. There is no relationship between a change in the cost of capital and the IRR of a project.