Other things held constant, an increase in the cost of capital will result in a decrease in a project's IRR.

Name: Other things held constant, an increase in the cost of capital will result in a decrease in a project's IRR.
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Quizplus · Accepted Answer

The IRR (Internal Rate of Return) is a metric used to evaluate the profitability of a project and is not directly affected by changes in the cost of capital. The cost of capital influences the project's NPV (Net Present Value) and its acceptability, not its IRR.

Other Things Held Constant, an Increase in the Cost of Capital