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

Question

Quizplus · Accepted Answer

When the costs of an investment come before its benefits, a rise in interest rates will increase the discount rate used to calculate the net present value (NPV) of the investment. This will decrease the investment's NPV and make it less attractive to potential investors. Therefore, the best choice is D.

When the Costs of an Investment Come Before That Investment's