Business, 29.10.2019 01:31, minervica

If a firm is considering using its own funds (rather than borrowing) to finance investment projects, will higher interest rates discourage the firm from undertaking these projects? explain. (hint: think of yourself as the owner of a firm that has earned profits and imagine that you are going to use the profits either to finance new investment projects or to buy bonds. will your decision to invest in new projects in your firm be affected by the interest rate? )

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If a firm is considering using its own funds (rather than borrowing) to finance investment projects,...