In 2011, Tim's Gyms Needs to Finance the Building of a New

question 89

Multiple Choice

In 2011, Tim's Gyms needs to finance the building of a new gym. Suppose Tim secures this financing from a bank, and the bank receives ownership if Tim fails to make payments. This type of funding is

• A)a mortgage obtained in the loan market.
• B)a stock issued in the bond market.
• C)a bond issued in the bond market.
• D)a mortgage obtained in the stock market.
• E)a stock issued in the loan market.

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Definitions:

Net Present Value

A calculation used to determine the present value of an investment's profit by discounting future cash flows back to their present value.

Retail Outlet

A retail outlet is a physical location where goods and services are sold directly to consumers, encompassing a wide range of formats and sizes, from small stores to large department stores.

Expansion Projects

Initiatives undertaken by a business to increase its capacity, services, or products, often requiring significant investment.

Okanagan Area

A region located in the British Columbia province of Canada, known for its dry climate and as a popular destination for wineries, fruit orchards, and outdoor activities.