Additional Funds Needed (AFN) Will Be Negative If

question 25

Multiple Choice

Additional funds needed (AFN) will be negative if:

• A) assets that can be acquired only in large, discrete amounts are acquired.
• B) the plant and equipment of the firm is increased to achieve additional growth.
• C) the amount of internal financing expected is decreased because of an increase in operations of the firm.
• D) there are economies of scale in the use of many types of assets.
• E) the amount of internally generated funds is more than sufficient to support the forecasted increase in sales.

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