The Additional Funds Needed (AFN) to Achieve a Particular Growth

The additional funds needed (AFN) to achieve a particular growth in sales will be negative if:

A) assets that are required to support the growth can be acquired only in large, discrete amounts.
B) the amount of plant and equipment that is required to manufacture additional products is substantial.
C) the amount of internal financing the firm expects to generate is greater than the amount of external funds that must be raised to support the growth.
D) the firm must issue new long-term bonds to support the increase in sales.
E) the amount of internally generated funds is more than sufficient to support the forecasted increase in sales.

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