If interest rates are ____, ____ projects will have positive NPVs.
A) higher; more
B) lower; more
C) lower; no
D) none of the above

Name: If interest rates are ____, ____ projects will have positive NPVs. A) higher; more B) lower; more C) lower; no D) none of the above
Brand: Quizplus
Rating: 4.7 (32 reviews)

Question

Quizplus · Accepted Answer

When interest rates are lower, the discount rate used to calculate NPV is lower as well, resulting in a higher present value of future cash flows. Therefore, more projects will have positive NPVs.

If Interest Rates Are ____, ____ Projects Will Have Positive

If Interest Rates Are , Projects Will Have Positive