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In capital budgeting financing costs associated with incremental cash flows: need to be included in the cash flows that are discounted because they will not
In capital budgeting financing costs associated with incremental cash flows:
need to be included in the cash flows that are discounted because they will not occur if the project is rejected. |
are factored into the discount rate |
are not included in the cash flow figures because they are not relevant cash flows |
lead to distortions in the capital budgeting decision |
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