If an Investment (Where the Costs Are Incurred Before Then

question 19

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 less profitable, but it still may make money.
• C)a decrease in the interest rate will cause the investment to lose 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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Definitions:

Simplify

To reduce an expression or equation to its simplest form by performing all possible operations and combining like terms.

Shaded Portion

The part of a diagram or graph that is marked with a pattern or color to indicate it is different from the rest, often related to probability, geometry, or statistics.

Total Area

The entire surface area of a two-dimensional shape or the combined surface areas of all faces of a three-dimensional object.

Ratio

The quantitative relation between two amounts, showing the number of times one value is contained within the other.