Everyone uses money, and it is important to understand what factors affect the cost of money, Consider the following scenarios A friend comes to you and asks you to invest in his business instead of investing in Treasury bonds. You think he has a good business model, so you tell him you are willing to invest as long as the expected return on the investment is at least four times the return you would have received on the Treasury bonds 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 be 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? Roberto's aunt invested $100,000 in the business as an investment for retirement, and she expects to receive regular equal payments of $5,500 every year for the next nine years. Roberto's unde wants to buy a house next year. He invested $100,000 in the business. He expects to earn a 10% rate of return every two years for the next nine years