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Estimating Cash Flows. Jason?s car was just stolen, and the police informed him that they will probably be unable to recover it. His insurance will
Estimating Cash Flows. Jason?s car was just stolen, and the police informed him that they will probably be unable to recover it. His insurance will not cover the theft. Jason has a net worth of $5,000, all of which is easily convertible to cash. Jason requires a car for his job and his daily life. Based on Jason?s cash flow, he can?t currently afford more than $200 in car payments. What options does he have? how will these options affect his net worth and cash flow? What options does he have and how will these options affect his net worth and cash flow? (Select the best answer below.) A. He can convert his net worth to cash and avoid any effect on his cash flow. B. He can borrow the needed amount, which will reduce his net worth but leave his cash flow unchanged. C. He can borrow the needed amount, which will reduce his cash flow but leave his net worth unchanged. D. He can convert his net worth to cash, lowering his net worth and cash flow
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