The acceptance of a capital budgeting project is usually evaluated on its own merits. That is, capital budgeting decisions are treated separately…
The acceptance of a capital budgeting project is usually evaluated on its own merits. That is, capital budgeting decisions are treated separately from capital structure decisions. In reality, these decisions may be highly interwoven. This may result in:A. firms rejecting positive NPV, all equity projects because changing to a capital structure with debt will always create negative NPV.B. never considering capital budgeting projects on their […]