As the increased interest rate will increase the cost of consumer financing therefore the consumer financing may decline. The present value of future cash flows will decline and the future value of today’s investment will go up as the annuities will be compounded at higher rates. As the present value will decline, the NPV will also decline due to increase cost of capital, which is used to discount the future cash flows. As cost of capital will increase therefore the WACC will increase which will reduce the present value and the NPV of the project. As the interest expense will increase therefore the corporate earnings may decline.