Chapter 9, Problem 3.6PA

Sub-part

A

To determine

the reason for increase in investment expenditures as a result of decline in interest rates when a new plant and equipment is purchased.

1. Construction of a new housing
2. Increase of inventories

Sub-part

B

To determine

the reason for increase in investment expenditures as a result of decline in interest rates when a new house is being constructed.

Sub-part

C

To determine

the reason for increase in investment expenditures as a result of decline in interest rates when inventories are increased.