8. The procedure in seeking a loan from the Small Business Administration is fairly elaborate. What is the usual sequence for this process?
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A.) What is the role of the five Câs of credit in the credit selection activity? Elaborate and explain
B.) What is a revolving credit agreement? How does this arrangement differ from the line-of-credit agreement? Elaborate and Explain
pOSTED PREVIOUSLY AND TUTOR DID NOT ELABORATE AND EXPLAIN NOR RESPOND BACK TO COMMENTS LEAVING ME PUZZLED AND CONFUSED.
A.) Financial theory indicates that NPV is the theoretically correct method to use to evaluate capital investments. Yet, surveys of financial managers consistently indicate that IRR is the most widely used technique by practitioners. Why do you suppose this discrepancy exists? PLEASE ELABORATE AND EXPLAIN!
B) How can NPV be used in personal life? Elaborate and explain.
C.) Capital budgeting decisions are usually made by teams of executives from various divisions within a corporation. Departmental managers, when presenting their capital budgeting proposals to the executives, are sometimes tempted to inflate the estimates of returns to be earned from their proposals, in order to increase the likelihood that the proposals will be accepted. If you were CFO of a corporation, what steps could you take to prevent this from happening? PLEASE ELABORATE AND EXPLAIN
Small Business Finance Scenario:
Your friend has tried to get a traditional loan but canât because he has a low asset base and is considered a high risk. Your friend needs money quickly but the bank process takes forever. What advice will you give him?