Non-market or subsidized financing ________ the APV ___________.
A) has no impact on; as the lower interest rate is offset by the lower discount rate
B) decreases; by decreasing the NPV of the loan
C) increases; by increasing the NPV of the loan
D) has no impact on; as the tax deduction is not allowed with any government supported financing
E) None of these.
Correct Answer:
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