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Tutorial   22997

Capital budgeting proposals for investment projects should be evaluated as if the project were financed: a. entirely by debt. b. entirely by debt,...

Question:

Capital budgeting proposals for investment projects should be evaluated as if the project were financed:

                a.            entirely by debt.

                b.            entirely by debt, adjusting for taxes.

                c.             half by debt and half by equity.

                d.            with the highest cost source of funds, to be safe.

                e.            the financing and investment decisions should be viewed separately.

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