1- Debt financing includes:

Select one: a. loans b. bonds c. mortgages d. all of the above mentioned

2-

Assume that two investments have a three-year life and generate the cash flows shown below. Which of the two would you prefer? Year Investment A Investment B 1 $5,000 $8,000 2 $5,000 $5,000 3 $5,000 $2,000 Select one: a. Both investments are equally attractive b. Investment A, since it has the most even cash flows c. Neither, since they both have equal lives d. Investment B, since it gives you the largest cash flows in earlier years