The cowboys christmas company uses a required return of 113, Financial Management

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The cowboys christmas company uses a required return of 113

The Cowboys Christmas Company uses a required return of 11.3% to evaluate most projects of average risk. Suppose the company is looking at a new project that is lower-than-average-risk, and the CEO thinks the discount rate should be risk-adjusted. What effect will this have on the project's NPV?

A) Decrease NPV B) No effect on NPV C) Increase NPV D) NPV will double

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Financial Management: The cowboys christmas company uses a required return of 113

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