You provide a detailed consideration of the macro trends prevalent in an economy but I wonder how that will impact a firm and managment's capital investment decisions?

As we are discovering last week and this week, the size of the discount rate "r" in our calculations has a huge impact on TMV calculations. For a manager looking to invest in a new project and wanting to borrow to finance it, the actions of the central bank are highly relevant.

it would be great if you could broaden your answer to include what might be happening at a firm level with these macro changes.

REF:

Bank of Canada. (2024, January 24).Monetary policy report - January 2024. RetrievedFebruary5, 2024, fromhttps://www.bankofcanada.ca/2024/01/mpr-2024-01-24/.

Ross, S. A., Westerfield, R. W., Jordan, B. D., Pandes, J. A., & Holloway, T. (2022). Fundamentals of corporate finance (11th Canadian ed.). McGraw-Hill Ryerson.

Please provide a brief and comprehensive response with IN-TEXT Citations. Thanks!