Answer:
a. is now lower than it was before, and so Hydro Grow is less likely to build the building.
Step-by-step explanation:
The interest rate increase will reduce the net present value of the project as the lenders of fund will demand more interest and since the Weighted Average Cost of Capital of the project will increase. The increased WACC will cause the project to be more riskier and since the future benefit of the project will be reduced.