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Task 3: Internal financing (15 points) There are different forms of internal financing. a.) What are the advantages and disadvantages of open self-financing compared to
Task 3: Internal financing (15 points) There are different forms of internal financing. a.) What are the advantages and disadvantages of open self-financing compared to other forms of financing? (4 P.) b.) Explain in general the content of the capital release effect. Demonstrate the effect with the following example: The Treu und Glauben auditing company successively purchases new notebooks for its field staff each year, each worth 500 euros. The useful life of the notebooks is 5 years; they are depreciated on a straight-line basis. In the first year 8 notebooks are purchased, in each of the following two years 2 more notebooks are purchased. Determine the possible capital release, assuming that the depreciation is "earned". (11 P.)
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