In General,in Capital Budgeting,cash Flows Resulting from Financing Are

question 3

Multiple Choice

In general,in capital budgeting,cash flows resulting from financing are:

• A)the most important source of cash flow since significant projects usually require a firm to borrow funds.
• B)not considered because the discount rate used in valuing cash flows takes into consideration cash flows resulting from financing.
• C)not considered because financing does not produce usable cash flows for a firm.
• D)one of the cash flows considered and are equal to cash flows related to operations and investing.

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