What will be the effect of a rise in interest rates

Assignment Help Finance Basics

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

Questions Cloud

How many directors can cumulonimbus elect : Sharpe Products has 1 million outstanding shares and 9 directors to be elected. Cumulonimbus Holdings owns 175,000 shares of Sharpe. How many directors can Cumulonimbus elect with cumulative voting?

Items would affect a company''s ability to attract new : 1. How do you think each of the following items would affect a company's ability to attract new capital and the flotation costs involved in doing so?

Write a program which print complete name and the city name : Write a program which print your complete name and your city name at the middle two rows of the screen with the following attributes. Use white back ground and blue foreground color ifthe length of the name is greater than the length of the city nam..

Explain mixtures of diastereomeric 1,3-dimethylcyclopentanes : Mixtures of diastereomeric 1,3-dimethylcyclopentanes are formed on catalytic hydrogenation of all but one of the following. Which compound gives only a single stereoisomer of 1,3-methylcyclopentane

What will be the effect of a rise in interest rates : 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?

Which describes the annual percentage rate best : Which describes the annual percentage rate best?

Calculate the future value of an investment : Calculate the future value of an investment, given the following characteristics: (a) PV: $30,000, (b) NPER: 25, (c) Rate: 5%.

Explain the kinetic energy of a rolling billiard ball : The kinetic energy of a rolling billiard ball is given by . Suppose a 0.17- billiard ball is rolling down a pool table with an initial speed of 4.5 . As it travels, it loses some of its energy as heat.

Define which one would be able to carry 30 amperes safely : A number 10 copper wire will carry up to 30 Amperes of current. If the copper wire is to be replaced by an aluminium wire and the only available gauges of aluminium wire in stock areNos 8,10,12 and 14, which one would be able to carry 30 amperes s..

User Account

All Pages