Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 22 Nov 2017 My Price 5.00

discourage investment.

there is an arguments that investment depends negatively on the interest rate because an increase in the cost of borrowings discourage investment. However, firms often finance their investment projects using their own funds. If a firm is considering using its own funds (rather than borrowing) ? Explain (Hint: Think of yourself as the owner of a firm that has earned profits and imagine that you are going to use the profit either to finance new investment projects or to buy bonds. Will your decision to invest in new projects in your firm be affected by interest rate?)

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Maurice Tutor
(5)
Status NEW Posted 22 Nov 2017 10:11 PM My Price 5.00

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