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QUESTION

1. Comment on the following statement: “Under no conditions should the investment decision be made simultaneously with the financing decision.”      2.“If an investment does not fit with a

1. Comment on the following statement: “Under no conditions should the investment decision be made simultaneously with the financing decision.” 

2.“If an investment does not fit with an organization’s strategic plan, it is probably not a good idea, even if the net present value is 

positive.” Under what conditions would this be a true statement? When would it be false?

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* Comment ** *** following statement: ******** no ********** ****** *** ********** ******** ** **** simultaneously **** *** financing ********************* ********* is **** restrictive *** *** ******** ********* in ******** ***** ****** *********** debt service **** *** the ****** ** *** firm’s *** ********* is correct ******* the loans are arranged **** the ******** of all debt service ******* from *** **** ********* by the ***** ********* **** ********** Hence the *** ********* *** ** **** together2“ ** ** ********** **** *** fit **** ** **************** ********* plan ** ** ******** not * good **** **** ** the *** present ***** ** *********** ***** **** conditions would **** ** * **** ********** **** ***** ** ** **************** ********* ** **** ********** ****** ** **** ***** ** ********** with *** ******** ** *** company Sometimes * **** ***** ***** ** too good ** **** In such ***** company *** ****** *** **** in ************* *** ************

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