1. The Zelen's project requires initial investments of $100 and its NPV is less than zero. If the project has all positive cash flows and discount rate is above zero, and the project life is 5 years then:

   I The NPV of the project may become positive if the discount rate will increase significantly enough.

   II The IRR of the project will increase if the required rate of return increases.

   		I only
   		I and II
   		None of the above
   		II only