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Companies that choose to venture out on capital projects canutilize current savings, equity, or debt as ways to raise theneeded amounts. Each has benefits and limitations which change aseconomic and fiscal policy actions occur in the national andinternational realms. As a result, the company will want to have asolid understanding of these factors and be able to support itschoice. Based on the current economic environment, which of the 3options mentioned above would you recommend to a company financinga 2-year project? A 20-year project? Make sure that you addressrisk tolerance as a significant part of your response.
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