In Which Two Ways May Double Counting Occur When Considering

question 19

Multiple Choice

In which two ways may double counting occur when considering interest on borrowing to finance a project?

• A) As discounted cash flow and as an element in profits
• B) As cash flow and as an element in profits
• C) As cash flow and as an element in the discount rate
• D) As sunk costs and as an element in the discount rate