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…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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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?