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Is a debt-free company a sign of achievement for a company? Should all businesses become debt-free? Or does debt actually have a benefit?
Srinivasa Addepalli provides a perspective on this question that has a personal finance application too. Should you take a loan to buy a house? Or repay your loan from your savings?
Business decisions, particularly those involving investments, require managers to build financial models and evaluate the attractiveness of the investment. As we go about this process, there are three financial concepts of decision making that are crucial.