Question

can you please solve this

& Calculation of unit cost is often required in order to achieve unit cost, it is generally preferable to perform er to determine th e elder Present Worth analysis Annual Equivalence analysis Benefit Cost analysis Credit-worthiness analysis 9. In general and keeping everything el incorrect verything else . Which of the following statements a. When Risk-free rate is increases, Risk-free rate is increases the interest rate also increases. When inflation increases the interest rate also increases. c. When riskiness of a project decreases Skihess of a project decrease the risk premium also decreas d. When risk premium of a pro risk premium of a project increases, the interest rate decreases.

Answer 1

8. Annual Equivalence Analysis is often recommended over Present Worth analysis for its easy and uncomplicated use, its relevance, for achieving unit cost that is required to determine reasonable prices. Thus, option B is correct.

9. When risk-free rate is increased, the interest rates also increase.

When the rate of inflation increases, people tend to save less and as a result, the deposits in the bank reduce causing interest rates to shoot up.

A decrease in the riskiness of a project will lead to a decrease in risk-premium.

However, an increase in risk-premium will increase interest rates and not decrease them. Thus, option d is incorrect.