Question: Consider a project with negative cash flow in Year 0, positive cash flows after Year 0. If the company felt that the risk of the

Consider a project with negative cash flow in Year 0, positive

Consider a project with negative cash flow in Year 0, positive cash flows after Year 0. If the company felt that the risk of the project was less than original estimates, what will happen to NPV and IRR of this project? IRR will be higher and NPV will be lower NPV will be higher and IRR will stay the same NPV will be lower and IRR will stay the same NPV will be higher and IRR will be lower

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