What will be the effect of a rise in interest rates

Reference no: EM13295774

When the cost of an investment come before that investment's benefits, what will be the effect of a rise in interest rates on the attractiveness of that investment to potential investors?

a) it will make it less attractive, since it will decrease the investment's net present value
b) it will make it less attractive, since it will increase the investment's net present value
c) it will make it more attractive, since it will increase the investment's net present value
d) it will make it more attractive, since it will decrease the investment's net present value

Reference no: EM13295774

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