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You have just finished an analysis of an investment opportunity for your firm. You calculated the NPV and IRR of the project assuming a cost

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You have just finished an analysis of an investment opportunity for your firm. You calculated the NPV and IRR of the project assuming a cost of capital r, only to find out afterwards that the actual cost of capital is T2 > 11. Which of the following is true about the correct NPV and IRR (NPV2, IRR2) relative to your initial analysis (NPV1, IRR)? 1. NPV2 NPV1, IRR2 NPV1, IRR2 > IRR

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