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.

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Definitions:

Negative Amount

A value less than zero, indicating a deficit or loss in a numeric context.

Linear Model

A type of statistical model that assumes a linear relationship between one or more independent variables and a dependent variable, represented by a straight line in a two-dimensional plane.

Regression Analysis

A statistical technique used to examine the relationship between a dependent variable and one or more independent variables.

Y-Intercept

The point at which a line crosses the y-axis on a graph, representing the value of y when x equals zero.