A project has an initial cash outflow followed by several years of cash inflows. What...

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Accounting

A project has an initial cash outflow followed by several years of cash inflows. What will be the effect on the Internal Rate of Return (IRR) of the project and its payback period, if during the period there is an increase in the companys cost of capital?

a) IRR increase; Payback period increase

b) IRR no change; Payback period increase

c) IRR increase; Payback period no change

d) IRR no change; Payback period no change

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