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A- not change
B- Increase
c- decrease
d- there are not any relation
B - Increase, as IRR is a rate at which NPV is zero, i.e., cash outflow and cash inflow is equal.
Hence when IRR increase so does NPV, so we choose project, which have higher IRR.
IF IRR INCREASES PV WILL INCREASES SO AS NPV SO B IS CORRECT OPTION.
C is the correct answer
thanks
The increase of IRR do not any relation of NPV. But in decision making process, NPV must be higher then IRR.
ANSWER OPTION >>>>>>>>>>>> c- decrease
(B) is the Correct Ans.
Increase,.....
B->>>>>>>>>>>>>>>>>>>>>>>> Increase
NPV will be zero at a certain IRR. Now when IRR increases, the NPV will decrease.