UNT Inc is undertaking a $10,000,000 project that will generate $2.5M of yearly after-tax cash flows. Assume the project

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UNT Inc is undertaking a $10,000,000 project that will generate$2.5M of yearly after-tax cash flows. Assume the project's IRR is15%. If the firm finances the project with only equity, the cost ofcapital will be 20% and the NPV will be negative. However, ifUNT finances the project with a mix of debt and equity, the cost ofcapital will be 10% and the NPV will be positive. This change tothe NPV of the project has what effect on the project'sIRR?
Multiple Choice
No effect
Increases the IRR
Decreases the IRR
not enough information to answer.