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The finance manager advises the CEO, We've got a short-term cash-flow problem. We can draw on our line of credit, and the interest rate is
The finance manager advises the CEO, "We've got a short-term cash-flow problem. We can draw on our line of credit, and the interest rate is only 2.5%. If we sell our accounts receivable, it'll cost us 3%. I recommend drawing on our line of credit." Which consideration in evaluating financing options does this illustrate? a) b) term of financing d) cost of financing c) amount of financing external factors
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