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Paraphrase + explain this sentence: If Nikken Microsystems' opportunity cost of capital is 16.667%, it should be indifferent financially between the two alternatives. However, selling
Paraphrase + explain this sentence:
If Nikken Microsystems' opportunity cost of capital is 16.667%, it should be indifferent financially between the two alternatives. However, selling the acceptance at once, alternative 1, improves Nikken's liquidity and removes the debt that otherwise would be financing the acceptance from Nikken Microsystem's balance sheet.
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