A project's IRR is independent of the firm's cost of capital.In other words, a project's IRR doesn't change with a change in the firm's cost of capital.

Name: A project's IRR is independent of the firm's cost of capital.In other words, a project's IRR doesn't change with a change in the firm's cost of capital.
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Question

Quizplus · Accepted Answer

The internal rate of return (IRR) of a project is calculated based on the project's cash flows and not affected by the firm's cost of capital. Therefore, the answer is true.

A Project's IRR Is Independent of the Firm's Cost of Capital.In