See vertical intercept means undiscounted cash flow. Horizontal Intercept is IRR.
So projects o/f is increasing by 15 & inflow is increasing by 5*4= 20. On the whole undiscounted net cash flow increasing by 5. Therefore vertical intercept goes up
Now horizontal for intercept think this way, that earlier by investing 1 rs we were earning 40/100 = 40%… But the the extra earning is 5/15 = 33.33%, it’s a pain. So IRR, i.e horizontal intercept shifts towards left.
See vertical intercept means undiscounted cash flow. Horizontal Intercept is IRR.
So projects o/f is increasing by 15 & inflow is increasing by 5*4= 20. On the whole undiscounted net cash flow increasing by 5. Therefore vertical intercept goes up
Now horizontal for intercept think this way, that earlier by investing 1 rs we were earning 40/100 = 40%… But the the extra earning is 5/15 = 33.33%, it’s a pain. So IRR, i.e horizontal intercept shifts towards left.
So answer is A
Hope this helps
Thank you so much for explaining in very simple manner😊
Your welcome