Final answer:
The repayment of Proceeds Interest is not reported in the Capital Project Fund but in the Debt Service Fund. This is because the Capital Project Fund is for the acquisition of capital facilities, while the Debt Service Fund is for the repayment of interest and principal on long-term debt.
Step-by-step explanation:
The statement 'Repayment of Proceeds Interest would be reported in the Capital Project Fund' is false. Capital Project Funds are governmental accounting funds used for the acquisition or construction of major capital facilities. When a government entity receives proceeds from a bond issuance, which it will use for capital projects, these proceeds are indeed recorded in the Capital Project Fund. However, the repayment of the bond interest and principal is not recorded in the Capital Project Fund. Instead, these transactions are recorded in the Debt Service Fund. The Debt Service Fund is used to account for the accumulation of resources for, and the payment of, general long-term debt principal and interest.
It is noteworthy that factors like a company's profitability and economic interest rates impact the valuation of a loan. For instance, a company with high profits is more likely to repay a loan, potentially making the loan more attractive to investors, which reflects point 'c.' Furthermore, if interest rates in the economy fall, existing loans with higher interest rates become more valuable, which aligns with point 'd.'