When the Costs of an Investment Come Before That Investment's

question 70

Multiple Choice

When the costs of an investment come before that investment's benefits,what will be the the effect of a rise in interest rates on the attractiveness of that investment to potential investors?

• A)It will make it more attractive,since it will increase the investment's net present value (NPV).
• B)It will make it more attractive,since it will decrease the investment's net present value (NPV).
• C)It will make it less attractive,since it will increase the investment's net present value (NPV).
• D)It will make it less attractive,since it will decrease the investment's net present value (NPV).
• E)It will be unchanged,since NPV calculations ignore changes in interest rates to more accurately compare the NPVs of projects beginning at different times.

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Definitions:

ICD-9-CM

International Classification of Diseases, Ninth Revision, Clinical Modification; a medical classification list for coding diseases, symptoms, and procedures.

ICD-10-CM

International Classification of Diseases, Tenth Revision, Clinical Modification; a system used by healthcare providers to classify and code all diagnoses, symptoms, and procedures.

Always At Least 3 Characters

A requirement in data input or programming that asserts a string or input must contain a minimum of three characters.

ICD-9-CM

The International Classification of Diseases, Ninth Revision, Clinical Modification, a system used in the United States for coding and classifying morbidity data until replaced by ICD-10-CM.