Solved: Changing of revenue all the time, Finance Basics

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Changing of revenue all the time

Please assist with the given finance problem. Provide at least 200 to 300 words in the solution.

Question: Pertaining to capital budgeting, why would you borrow at 7% if you are only going to earn 5%? Could this be logical since revenue changes all the time?

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Finance Basics: Changing of revenue all the time

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