if debt is to be used to finance a project, then when cash flows for a project are estimated, interest payments should be included in the analysis. T/F

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19-12-2022
Business

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if debt is to be used to finance a project, then when cash flows for a project are estimated, interest payments should be included in the analysis. T/F

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Tutorconsortium510 Tutorconsortium510 · Answer 1 · 2022-12-24T01:08:57-05:00

The above statement is untrue; it claims that if the debt is to be utilized to finance a project, interest payments should be taken into account when estimating the project's cash flows.

What does debt mean in plain terms?

Debt is the amount owed by the borrower to the lender. A debt is a sum of money borrowed for a predetermined amount of time that must be repaid together with interest. The borrower's creditworthiness affects both the debt's size and its acceptance.

How do debt and equity differ?

Your firm can be financed in a variety of ways, including debt and equity. Debt is the direct borrowing of money, whereas equity is the sale of stock in your company in an effort to raise money.

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