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Which of the following statements is the correct treatment of finance charges in project evaluation?

a) Finance charges should be excluded from a project's net cash flows and included in the discount rate.

b) Finance charges should be included in a project's net cash flows and excluded from the discount rate.

c) Finance charges should be included in a project's net cash flows and in the discount rate.

d) None of the given options.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92058327

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