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

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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, if UNTfinances 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's IRR?Multiple Choice No effect Increases the IRR not enough informationto answer. Decreases the IRR