How does extending the project life affect IRR?

پراجیکٹ کی زندگی کو بڑھانا آئی آر آر کو کیسے متاثر کرتا ہے؟

Depends on cash flow patterns

Increases IRR

Decreases IRR

No effect

Extending the project life may Increase IRR, depending on cash flow patterns.

If the additional years generate significant positive cash flows.

The IRR may increase, indicating higher profitability.