With everything else held constant, which of the following events should increase the internal rate of return of a capital budgeting project?   A. An increase in the cost of the asset.   B. A decrease in the firm’s cost of capital.   C. A decrease in the cost of operating the asset.   D. A decrease in tax benefit

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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With everything else held constant, which of the following events should increase the internal rate of return of a capital budgeting project?

  A.

An increase in the cost of the asset.

  B.

A decrease in the firm’s cost of capital.

  C.

A decrease in the cost of operating the asset.

  D.

A decrease in tax benefits.

 

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