Business Finance Homework Help

Discussion 1

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Prior to beginning work on this discussion, read Chapter 9: The Time Value of Money in your textbook.

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If a company wishes to purchase new equipment, it must have capital. But, before making any purchase, the financial manager needs to decide if the benefits of the new equipment outweigh the present and future benefits of the capital. For this discussion, address the following:

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• Summarize the concept of time value as it relates to money.
• Explain how managers estimate the future benefits of capital.
• Analyze how the time value of money impacts capital investment decisions.

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Discussion 2

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Prior to beginning work on this discussion, read Chapter 16: Long-Term Debt and Lease Financing in your textbook.

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Corporate debt has been increasing dramatically in recent years. Most people view debt in a negative light. However, with a little balance, debt can be beneficial. For this discussion, address the following:

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• Discuss the benefits and drawbacks of corporate debt.
• Explain how financial managers can assess the company’s debt structure, and determine how reasonable it is.
• Describe the factors one should consider when deciding if a company’s debt should be increased or decreased.

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Guided Response: Review the posts from your classmates and respond to at least two. Compare and contrast the points you and your classmates made regarding the factors one should consider when deciding if a company’s debt should be increased or decreased. Each response should have a minimum of 300 words for each discussion.