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Question 2 1 pts A firm is currently faced with two investment opportunities. Assume the following: -Investment A . Cost = $100,000 Life = 20
Question 2 1 pts A firm is currently faced with two investment opportunities. Assume the following: -Investment A . Cost = $100,000 Life = 20 years Expected Return = 7% - Investment B . . Cost = $100,000 Life = 20 years Expected Return = 12% Cost of Equity: 14% Cost of Debt Financing: 6% If the firm uses only equity financing, which investment(s) would it make? Neither investment Investment A O Investments A & B O Investment B
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