Consider a Project with an Initial Investment and Positive Future

Multiple Choice

Consider a project with an initial investment and positive future cash flows. As the discount rate is increased the ___________________.

A) IRR remains constant while the NPV increases
B) IRR decreases while the NPV remains constant
C) IRR remains constant while the NPV decreases
D) IRR increases while the NPV remains constant
E) IRR decreases while the NPV decreases