Project’s Net Present Value Analysis Assignment | Homework For You
May 25th, 2020
Question 40 A corporation is considering funding a potential investment project by using debt only. The project’s initial cash flow projections were developed without considering how the project would be financed. Assuming the corporation decides to use only debt financing, then the project’s net present value analysis most likely should:

not be adjusted to reflect the effect of the project’s all-debt funding on the cash flow or on the discount rate.
be adjusted by altering the discount rate used to reflect that only debt financing is used.
be adjusted by changing the projected cash flows to reflect the interest cost of debt. Get Finance homework help today
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