HydroGrow Is Considering Building a New Greenhouse in Which to Grow

question 39

Multiple Choice

HydroGrow is considering building a new greenhouse in which to grow tomatoes.The board meets and decides that this is the right thing to do.Before they can put their plans into action,the interest rate increases.The present value of the returns from this investment project

• A)is now lower than it was before,and so Hydro Grow is less likely to build the building.
• B)is now lower than it was before,and so HydroGrow is more likely to build the building.
• C)is now higher than it was before,and so HydroGrow is less likely to build the building.
• D)is now higher than it was before,and so HydroGrow is more likely to build the building.

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