realyifei

我记不大清楚原题的具体措辞了。如果原题就是这样，答案显然是decrease less than 250,000.

The only place NPV is mentioned: "the NPV for the project is -$250,000", and the question is about "the change in NPV". In other words, what is the change in "-$250,000" if RRR is now 12%. And look at the answers, the wording "descrease/increase", descrease/increase from what? from the explicitly mentioned NPV "-$250,000", not the implicit NPV of zero of IRR.

if a project has IRR of 10%, and the NPV for the project is -$250,000 using required rate of return of 11%, what is the change in NPV if required rate of return is now 12%?
   the choices are
       decrease more than 250,000,
       decrease less than 250,000,
       increase more than 250,000,
       increase less than 250,000