If we hold all other factors the same, an increase in interest rates will: a.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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If we hold all other factors the same, an increase in interest rates will:

a.
Decrease the present value of a stream of constant payments we expect to receive.

b.
Increase the present value of a stream of constant payments we expect to receive.

c.
Decrease the interest revenue that a company will earn on its funds that it holds in its interest-bearing checking account.

d.
No impact on how much a company should be willing to pay for factory equipment that is expected to significantly reduce the factory electricity costs.

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