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can you answer both debt your When conducting capital budgeting, it is important to include interest rates as a cash outflow to account for any

image text in transcribedcan you answer both
debt your When conducting capital budgeting, it is important to include interest rates as a cash outflow to account for any firm expects to take on in financing a project. False. Debt is an operating decision and seperate from the value of the project. True. A firm generally knows how much debt they expect to issue so including interest payments gives a more accur. estimate of the project's value True. Since the cost of debt is included in estimating the WACC which discounts future cash flows, it should also be included as an incremental cash flow. False. Debt is a financing decision and seperate from the value of the project itself curate QUESTION 16 Should taxes ever be allowed to be negative in a capital budgeting analysis? Yes, always. Yes, assuming the firm has other earnings unrelated to the project. No, unless the corporation has an agreement to have the government pay them negative taxes should EBiT be negative. No, never

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