A Company That Produces Computer Peripherals Is Considering Buying Some

Multiple Choice

A company that produces computer peripherals is considering buying some new equipment that it expects will increase future profits. If the interest rate rises, the present value of these future earnings

A) rises. The company is more likely to buy the equipment.
B) rises. The company is less likely to buy the equipment.
C) falls. The company is more likely to buy the equipment.
D) falls. The company is less likely to buy the equipment.