Question: Question 24 Additional debt can affect the behavior of managers. Debt can make managers too risk-averse, causing underinvestment in risky but positive NPV projects. True

Question 24 Additional debt can affect the behavior of managers. Debt can make managers too risk-averse, causing underinvestment in risky but positive NPV projects. True False

Question 25

When deciding whether or not to take a trade discount, the cost of borrowing funds should be compared to the effective annual rate (EAR) of trade credit to determine if the cash discount should be taken.

True

False

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