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ROA and Cost of Financing Len and Joan intend to invest $300,000 in their CompuTech Sales and Service retail store. Their financial projections show that

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ROA and Cost of Financing Len and Joan intend to invest $300,000 in their CompuTech Sales and Service retail store. Their financial projections show that during the first year of operations, CompuTech will generate $30,000 in profit, with substantial increases in the following years, To finance their business, Len and Joan will need $100,000 in loans (short-term and long-term borrowings) from the bank at 5% (after taxes). The other $100,000 will come from their savings. The Millers are currently earning 7% (after taxes) on their savings. Remember the Millers are not financing the business only from borrowing but also by using money from their savings. ROA and Cost of Financing Homework =-Unanswered = Due May 26th, 2:30 AM Should the Millers launch their business and why? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a Yes because cost of funding exceeds return on assets b No because cost of fuding exceeds return on assets c. Yes because return on assets exceeds cost of funding d No because return on assets exceeds cost of funding

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