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How are financing costs generally incorporated into the capital budgeting analysis process?
Financing costs are typically captured in the discount or hurdle rate when doing IRR or NPV analysis. The operating cash flows typically don't include financing costs because this would be double counting.
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Briefly explain the accounting concepts which guide the accountant at the recording stage.
FIXED ASSETS 200 000 LONG TERM LIABILITIES CURRENT ASSETS CASH 40 000 LOAN
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