When businesses calculate the costs to borrow money for capital budget projects they must be sure to include the _____ expenses for the debt used to finance the project. Multiple choice question. interest equity principal factor

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26-04-2022
Business

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When businesses calculate the costs to borrow money for capital budget projects they must be sure to include the _____ expenses for the debt used to finance the project. Multiple choice question. interest equity principal factor

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gauravsingh23VT gauravsingh23VT · Answer 1 · 2022-05-03T13:20:14+02:00

Businesses must include the interest expenditures for the debt used to finance capital budget projects when calculating the costs of borrowing money for capital budget projects.

What is interest in business?

The cost a firm pays a lender to borrow money is known as interest. Interest is normally calculated on the outstanding balance of a loan and paid monthly.

However there are a variety of options, At an agreed-upon interest rate, interest is normally computed as a percentage of the loan balance.

Thus, option A, interest is the correct option.

For further detail about interest, click here:

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