If you as a business owner know that your bank will provide financing for a project andthat the cash generated from the project must cover the loan payments, would you thenhave to include financing in your capital budgeting decision? Why or why not?

Capital investments is the investment for the long term and assets involved in capital investment…

Answered: If you as a business owner know that…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter10: Capital Budgeting: Decision Criteria And Real Option

Section: Chapter Questions

Problem 7QTD

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If you as a business owner know that your bank will provide financing for a project and that the cash generated from the project must cover the loan payments, would you then have to include financing in your capital budgeting decision? Why or why not?