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A Major Reason for Using Short-Term Debt for Capital Expenditures

Question 21

Multiple Choice

A major reason for using short-term debt for capital expenditures is which of the following?


A) because long-term interest rates are expected to come down in the future.
B) because technology in today's world has great fluctuations in cost and long-term financing may not pay.
C) because the project at hand may not be solid enough for long-term risk.
D) because the accounting staff must have something to do now that computers do most of the work.

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