Question: If accepting a project necessitates issuing bonds, the interest on the bonds A. is added to the initial outlay B. is not included in the

If accepting a project necessitates issuing bonds, the interest on the bonds
  • A. is added to the initial outlay
  • B. is not included in the project's cash flows because the required rate of return implicitly accounts for the cost of raising funds
  • C. is subtracted from the project's annual free cash flows
  • D. does not affect the decision to accept or reject the project in any way

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