The Lower the Minimum Desired Rate of Return, the _____

question 129

Multiple Choice

The lower the minimum desired rate of return, the _____.

• A)lower the present value of each future cash outflow
• B)higher the net-present-value of the project
• C)higher the present value of each future cash outflow
• D)lower the present value of each future cash inflow

---

Definitions:

Reacquisition

The process of a company buying back its own shares or bonds from investors.

Refunding

The process of replacing an old debt with a new one, usually with better terms, such as a lower interest rate.

Old Issue

A topic or problem that has been present or discussed for a long time.

New Bond Issue

The process of offering new bonds to investors for the first time to raise capital for the issuer.