Question: The Net Present Value (NPV) for a project is $0. If the Internal Rate of Return (IRR) increases by 2% and the Required Rate of

The Net Present Value (NPV) for a project is $0. If the Internal Rate of Return (IRR) increases by 2% and the Required Rate of Return (RRR) stays constant, what happens to the NPV and Hurdle Rate?

A. NPV increases, Hurdle Rate stays the same

B. NPV decreases, Hurdle Rate decreases

C. NPV stays the same, Hurdle Rate stays the same

D. NPV increases, Hurdle Rate increases

E. NPV decreases, Hurdle Rate stays the same

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