QUESTION 25 An Irish citizen is looking to deposit sufficient funds into a savings account with the goal to reach 5,000 in her savings account in exactly five years. She is considering two options 1. Anglo Irish Bank advertises a three percent APR and this investment compounds annually 2. Anglo Celt Bank offers an annual three percent simple interest The initial amount to be deposited will be the same regardless of which bank she chooses because they both pay the same interest the same regardless of which bank she chooses because they both pay interest for five years, the same regardless of which bank she chooses because the amount reached is the same. greater if she invests with Anglo Irish Bank. greater if she invests with Anglo Celt Bank QUESTION 26 Which one of the following is a capital budgeting decision? Should a new expensive facility be purchased to expand future production? Should the inventory level be increased? Should debt or equity financing be increased to pay for the firm assets? How could the firm improve customer perception? When should the firm's financial manager retire