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On January 1, 2024, Cicero Corporation borrowed $27 million from a local bank to construct...

a) New facilities
b) Equipment
c) Infrastructure
d) Not specified

1 Answer

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Final answer:

Cicero Corporation borrowed $27 million from a local bank to construct new facilities.

Step-by-step explanation:

When a firm needs to buy new equipment or build a new facility, it often must go to the financial market to raise funds. The purpose of borrowing money from a local bank, as stated in the question, is to construct new facilities. This means that Cicero Corporation borrowed $27 million to build new buildings or offices to support its business operations.

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