Borrowing to Pay for Long-Lived Capital Expenditures Makes Sense as

Borrowing to pay for long-lived capital expenditures makes sense as

A) the benefits are received in the current year so the burden of paying for them should be spread over many years.
B) the benefits are received over many years so the burden of paying for them should be spread over many years.
C) the benefits are received in the current year so the burden of paying for them should be paid in the current year.
D) the benefits are received over many years so the burden of paying for them should be paid in the current year.
E) the benefits received are received over many years so the extra burden of interest payments are always justified.

Correct Answer:

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