Non-Market or Subsidized Financing ________ the APV ___________

question 41

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
• E)None of the above