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    Capital Budgeting Practice Problem

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    If a firm uses external financing as a plug item, has a new capital budget of $2 million, a net income of $3 million, and a plowback ratio of 40%, how much should be raised in external funds?

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    https://brainmass.com/business/capital-budgeting/capital-budgeting-practice-problem-116799

    Solution Summary

    External funds for capital budgeting are discussed in a firm.

    $2.19

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