What will happen to the internal rate of return (IRR)of a project if the discount rate is decreased from 9% to 7%?

Question

Quizplus · Accepted Answer

The internal rate of return (IRR) is a metric used to evaluate the profitability of potential investments. It is the discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero. The IRR is a characteristic of the project's cash flow profile and does not change with the discount rate used in NPV calculations. Therefore, changing the discount rate from 9% to 7% does not affect the IRR of the project.

What Will Happen to the Internal Rate of Return (IRR)of