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If accepting a project necessitates issuing bonds, the interest on the bonds A. is added to the initial outlay B. is not included in the
If accepting a project necessitates issuing bonds, the interest on the bonds
- A. is added to the initial outlay
- B. is not included in the project's cash flows because the required rate of return implicitly accounts for the cost of raising funds
- C. is subtracted from the project's annual free cash flows
- D. does not affect the decision to accept or reject the project in any way
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Fundamentals Of Corporate Finance
Authors: Stephen A Ross, Randolph W Westerfield, Bradford D Jordan
7th Edition
0073134295, 9780073134291
