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C . None of the other statements / options is correct. D . The higher the risk associated with a project or a corporation the

C. None of the other statements/options is correct.
D. The higher the risk associated with a project or a corporation the lower the required expected return by investors would be.
5. Select only one of the five options below. Thabo owns a motor car. The life cycle cost includes:
A. The cost of putting petrol into the car from time to time.
B. The purchasing price of the car.
C. The cost of replacing the car's tyres every few thousand kilometres.
D. The cost of maintaining the car (taking it for services).
E. All the statements are correct.
6. Select only the statement that are true:
A. None of the other statements/options is correct.
B. The minimum acceptable rate of return (MARR) for a project is usually less than the company's cost of capital.
C. Companies (and governments) with high levels of debt are considered riskier by lenders and they usually demand higher interest rates from them.
D. If the income of companies with high levels of debt is affected by events such as natural disasters and lockdowns due to Covid-19, then they are less likely to pay interest on loans and repay debt (compared to companies with much lower levels of debt).
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