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Which of the following does the weighted average cost of capital take into consideration? a. short-term lenders only b. all investors c. trade creditors d.

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Which of the following does the weighted average cost of capital take into consideration? a. short-term lenders only b. all investors c. trade creditors d. long-term lenders only Clear my choice What is the cost of financing usually compared to? a. the cost of financing b. the return on assets Cthe return on sales d. the internal rate of return Clear my choice What is the matching principle? a. the process that relates debt to total assets b. the process that relates current liabilities to long-term debt the process that relates current assets to capital assets d. the process that relates financial needs to financing requirements **Bonus Question (5 Marks)** This Question requires you to calculate multiple NPV to compare options, choose the option with the highest NPV. Evaluate the following Investment options using the following information: Which option would you choose? Assume a WACC or discount rate of 13% (NPV-Initial investment - Discounted value of future payments) Option A A $10,000 investment in a new machine that will provide payments of 6000 $ at the end of the year 1 and 2000 $ for the next 4 years. Option B A $20,000 investment that provides equal payments of $3600 at the end of each year for 15 years. Optionc A $25,000 investment that provides payments of $12,000 at the end of each year for 3 years, Option D A $5000 investment that provides payments of $2500 at the end of each year for 15 years a. Option B b. Option A Option D

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