Assume that Atlas Sporting Goods Inc. has $860,000 in assets. If it goes with a low-liquidity plan for the assets, it can earn a return of 17 percent, but with a high-liquidity plan the return will be 14 percent. If the firm goes with a short-term financing plan, the financing costs on the $860,000 will be 11 percent, and with a long-term financing plan the financing costs on the $860,000 will be 13 percent.

a. Compute the anticipated return after financing costs with the most aggressive asset-financing mix.

b. Compute the anticipated return after financing costs with the most conservative asset-financing mix.