Tomʹs Donuts Can Invest in a New Espresso Machine That

Multiple Choice

Tomʹs Donuts can invest in a new espresso machine that costs $500 and will yield expected profits of $350 each year for two years. At higher interest rates, the present discounted value of profits from the investment

A) increases.
B) decreases.
C) is unchanged.
D) is indeterminate from the given information.