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With everything else held constant, which one of the following events should decrease the internal rate of return (IRR) of a capital budgeting project? a.

  1. With everything else held constant, which one of the following events should decrease the internal rate of return (IRR) of a capital budgeting project?

    a.

    A decrease in the firm's cost of capital.

    b.

    An increase in tax benefits.

    c.

    An increase in the purchase price of the asset.

    d.

    A decrease in the cost of operating the asset.

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