Consider a project with only positive cash flows after year 0. If the company felt that the risk of the project was less than original estimates, which of the following would occur?

Answer:	Required Rate of Return	Net Present Value	Internal Rate of Return
A	Higher	Higher	Lower
B	Higher	Lower	No Change
C	No Change	Higher	No Change
D	Lower	Lower	Higher
E	Lower	Higher	No Change

Multiple Choice

• A

• B

• C

• D

• E