A high cost of capital favors investments with large initial cash inflows.

Name: A high cost of capital favors investments with large initial cash inflows.
Brand: Quizplus
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Question

A high cost of capital favors investments with large initial cash inflows.​

Quizplus · Accepted Answer

A high cost of capital makes it more expensive to borrow money, which in turn makes it more expensive to invest in projects with large initial cash outflows. Therefore, a high cost of capital favors investments with large initial cash inflows.

A High Cost of Capital Favors Investments with Large Initial