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Which of the following is an internal source of funds? Multiple Choice Cash flow from depreciation (tax shield) Bank loan O Net loss Repurchase of
Which of the following is an internal source of funds? Multiple Choice Cash flow from depreciation (tax shield) Bank loan O Net loss Repurchase of debt securities O Which of the following is not a step in creating the net present value profile? Multiple Choice Determine the net present value at a zero discount rate. O Determine the payback for the project. Determine the net present value at a normal discount rate. O Determine the project's internal rate of return. Financial intermediaries serve which of the following purposes? Multiple Choice All of these options are correct. They aid in the flow of funds through the economy. They help provide allocation of funds to the best investments. They allow for indirect investment in the capital markets by households. The reason cash flow is used in capital budgeting is because Multiple Choice All of these options are true. to ignore the tax shield provided from depreciation would ignore the cash flow provided by the machine, which should be reinvested to replace older machines. cash rather than income is used to purchase new machines. O cash outlays need be evaluated in terms of the present value the resultant cash inflow O
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