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    3. Why would a long term project be better than a short term project of the cost of capital is low?
    Why would a long term project be better than a short term project of the cost of capital is low?

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    0  Views: 561 Answers: 1 Posted: 14 years ago
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      If you borrow when rates are low then you would like to keep it over a long period, whereas if you borrow when rates are high, then you won't to get rid of your debt ASAP
      So low cost long term.
      High cost short term
      Hope this helps
      14 years ago. Rating: 0
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