Question

Ronaldo’s Foods considered building a store in a new location. The owners and their accountants decided that this was not the profitable thing to do. However, soon after they made this decision, both the interest rate and the cost of building the store changed. In which case do these changes both make it more likely that they will now build the store?a. Interest rates rise and the cost of building the store rises.
b. Interest rates rise and the cost of building the store falls.
c. Interest rates fall and the cost of building the store rises.
d. Interest rates fall and the cost of building the store falls.

Answer 1

Answer: B

Explanation:

well from the information given making the store is not "profitable" so the only logical answer wold be B because they would make more money as the intrest of the building increases turning a profit even if they decided to sell the store in a year. also if the cost of making the building is lowered they are spending less to make more.