Mc Ou. 18 If an ivestment (where the costs If an Investment (where the costs are

Question

Mc Ou. 18 If an ivestment (where the costs If an Investment (where the costs are Incurred before then profitsy makes sense when the interest rate on the borrowed Multiple Choice Oa decrease In the Interest rate will cause the Investment to lose money Oa decrease in the Interest rate will cause the Investment to be less profitable, but it may still make money an Increase in the interest rate will cause the investment to be less profitable, but t may stll make money money O an Increase In the Interest rate will cause the Investment to lose

Explanation / Answer

Borrower is required to pay interest. If interest rate is reduced, then investment is more profitable and therefore investment make sense. If interest rate is increased, investment is less profitable but since profits occur later, the investment makes money

Choose 3rd option

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