Some of the money used to finance the project will be debt. Should the cash flows show interest charges &why
Question:
This question is part of a financial management class. So view it in a financial perspective. The company uses debt in its capital structure. Money used to finance the project will be debt.
Answer:
The interest should count as part of the expense. In finance every dollar is either positive or negative. (Most use [brackets] around negetive and positive just looks regular. If you can't put that money in your pocket then it is an expense and must be bracketed.
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