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Which probability of technical insolvency is reduced by

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Problem 1: Which of the following is a cost that requires a future outlay of cash that is which relevant for future decision-making?

a. Opportunity cost

b. Out-of-pocket cost

c. Sunk costs

d. Relevant benefits

Problem 2: If there were no income taxes...

A. depreciation would be ignored in capital budgeting

B. the NPV method would not work

C. income would be discounted instead of cash flow

D. all potential investments would be desirable

Problem 3: The probability of technical insolvency is reduced by

a. Financing permanent assets with short-term debt

b. Financing permanent assets with long-term debt

c. Maintaining a high level of liquid assets

d. Both b and c

Reference no: EM132809417

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