Ronaldo's Foods considered building a store in a new location.The owners and their accountants decided that this was not the profitable thing to do.However,soon after they made this decision,both the interest rate and the cost of building the store changed.In which case do these changes both make it more likely that they will now build the store?
A)Interest rates rise and the cost of building the store rises.
B)Interest rates rise and the cost of building the store falls.
C)Interest rates fall and the cost of building the store rises.
D)Interest rates fall and the cost of building the store falls.

Question

Quizplus · Accepted Answer

Lower interest rates reduce borrowing costs, and lower building costs reduce initial investment, making the project more financially attractive.

Ronaldo's Foods Considered Building a Store in a New Location