Everyone uses money, and it is important to understand what factors affect the cost of money. Consider the following scenario: Your accountant has convinced you that you should invest your bonus from this year into your retirement account-instead of buying a new sports car-because of the high expected return on the investment. Determine which of these fundamental factors is affecting the cost of money in the scenario described: Time preferences for consumption Inflation Risk Roberto recently started a new business with money that he collected from his friends and family. All other factors being equal, which of the following financing options has a higher cost for someone who needs capital to start a business? Veronica invested in Roberto's business and expects to earn a 10% rate of return every year for the next two years, irrespective of how much debt financing Roberto uses. Sheila expects to earn a return of 10% on her investment in Roberto's business for the next two years, but restricts Roberto to not finance his business with debt beyond 40% of the total capital needed