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How are stable cash flows likely to influence a firm's capital structure? Select an answer: by decreasing project capital utilization by increasing equity cost of
How are stable cash flows likely to influence a firm's capital structure? Select an answer: by decreasing project capital utilization by increasing equity cost of capital by reducing equity cost of capital stability of cash flows is not tied to WACC Your food truck at City Park is open year-round, but your sales are highest in the summer. Which action should you take in deciding whether or not to buy a newer food truck? Select an answer: Take into account the city license and utility costs when you make your decision. Assume the percentage increase in your cash flows the last five years will continue. Compare the cash flows from summer sales to cash flows the rest of the year. Model the scenarios based on the likelihood of receiving increased cash flows. How can you partially alleviate the various drawbacks of IRR? Select an answer: Assume that any cash received can be reinvested at the same rate. Anticipate you will have losses in some years and gains in other years. Use dollar profit figures in your calculations rather than percentages. Use percentages in your calculations rather than dollar profit figures
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