The Palaci 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 IRR will not change

II. The project's NPV will increase

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