The internal rate of return (IRR) will increase as the required rate of return of a project is increased.

Name: The internal rate of return (IRR) will increase as the required rate of return of a project is increased.
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Question

Quizplus · Accepted Answer

The internal rate of return (IRR) is the rate at which the net present value (NPV) of a project is zero. Increasing the required rate of return will lower the NPV, and thus lower the IRR. Therefore, the statement is false.

The Internal Rate of Return (IRR) Will Increase as the Required