Question

The internal rate of return for a project will increase if: the initial cost of the project can be reduced. the total amount of the cash inflows is reduced. each cash inflow is moved such that it occurs one year later than originally projected. the required rate of return is reduced. the discount rate is increased.

Answer 1

Answer:

the initial cost of the project can be reduced

Explanation:

As we know that the internal rate of return is the return where the net present value comes to zero or we can say that the initial investment would be equivalent to the present value of annual cash inflows

In the case when the internal rate of return is rise up so the initial investment or initial cost would be decreased

Therefore the first option is correct