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If an Investment (Where the Costs Are Incurred Before Then

Question 3

Multiple Choice

If an investment (where the costs are incurred before then profits) makes sense when the interest rate on the borrowed money to pay for it is 10%


A) an increase in the interest rate will cause the investment to lose money.
B) an increase in the interest rate will cause the investment to be more profitable.
C) a decrease in the interest rate will cause the investment to make even more money.
D) a decrease in the interest rate will cause the investment to be less profitable, but it still may make money.

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