Subsidized Financing ________ the APV ________

Subsidized financing ________ the APV ________.

A) has no impact on; as the lower interest rate is offset by the lower discount rate
B) decreases; by increasing the interest on the debt
C) increases; by decreasing the interest on the debt
D) has no impact on; as the interest tax deduction is not allowed for subsidized loans
E) increases; because subsidies offset all tax payments.