Non-Market or Subsidized Financing ________ the APV ____________

question 53

Multiple Choice

Non-market or subsidized financing ________ the APV ____________:

• A) has no impact on; as the lower interest rate is offset by the lower discount rate.
• B) decreases; by decreasing the NPV of the loan.
• C) increases; by increasing the NPV of the loan.
• D) has no impact on; as the tax deduction is not allowed with any government supported financing.