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    Financial Management Theory and Practice Study Set 5
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    Exam 11: Cash Flow Estimation and Risk Analysis
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    An Increase in the Risk-Adjusted Discount Rate for a Risky
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An Increase in the Risk-Adjusted Discount Rate for a Risky

Question 42

Question 42

Multiple Choice

An increase in the risk-adjusted discount rate for a risky project will result in which of the following?


A) no change to the NPV
B) an increase in the IRR
C) an increase in the NPV
D) a decrease in the NPV

Correct Answer:

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