In the Duration Matching Method of Evaluating Financing,the Implicit Assumption

In the duration matching method of evaluating financing,the implicit assumption is that:

A) assets will be used by a firm for a longer period of time than it takes the firm to repay the loan to purchase those assets.
B) asset value will always offset the amount of the liabilities that were incurred to acquire those assets.
C) it is possible to acquire assets that will be productive for exactly the amount of time that it takes to repay the loan to acquire those assets.
D) interest rates affect assets and liabilities in the same way and to the same extent.

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free