Question: In the graph below, three different debt funding approaches (A, B & C) where the red line shows the liquidity situation. Explain these briefly and

In the graph below, three different debt funding approaches (A, B & C) where the red line shows the liquidity situation. Explain these briefly and suggest the appropriate approach for a company by providing specific reasons and explain what firm should do when outlying.

Dollars B C Cumulative capital requirement Year 3 Time Year 1 Year 2

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