Long-term debt is generally less costly than short-term debt, but ...

[tth]

Long-term debt is generally less costly than short-term debt, but also results in more illiquidity
  Nhence, the risk-return trade-off.
 
  Indicate whether the statement is true or false

Question 2

Arguments against using the net present value and internal rate of return methods include that
 
  A) they require detailed long-term forecasts of the incremental benefits and costs.
  B) they fail to consider how the investment project is to be financed.
  C) they fail to use accounting profits.
  D) they fail to use the cash flow of the project.

[Galvarado142]

Answer to Question 1

FALSE

Answer to Question 2

A