If you were originally a lender, remain a lender even after a decline in interest rates. Will you get better or worse after the interest rate change? If you become a borrower after the change, will you get better or worse? Analyze consumer behavior in the above situation.

Alpha industries is considering a project with an initial cost of $8 million. the project will produce cash inflows of $1.49 million per year for 8 years. the project has the same risk as the firm. the firm has a pretax cost of debt of 5.61 percent and a cost of equity of 11.27 percent. the debt–equity ratio is .60 and the tax rate is 35 percent. what is the net present value of the project?