If interest rates are ____, ____ projects will have expected returns that exceed a business's particular required rate of return.
A)higher; more
B)lower; more
C)lower; no
D)None of these are correct.

Question

Quizplus · Accepted Answer

When interest rates are lower, the cost of borrowing decreases, making it more likely for projects to have expected returns that exceed a business's particular required rate of return. This is because the lower cost of financing increases the net present value of future cash flows from projects.

If Interest Rates Are ____, ____ Projects Will Have Expected

If Interest Rates Are , Projects Will Have Expected