Company A has an internal cost of capital of 7% annually. It is evaluating its investment options against its internal costs and has identified three potential investments:

c. A and C only

Explanation:

Here is the full question :

Company A has an internal cost of capital of 7% annually. It is evaluating its investment options against its internal costs and has identified three potential investments:

Investment A: Bond with annual returns of 8%

Investment B: Bond with annual returns of 4%

Investment C: Bond with annual returns of 12%

Which of the above investments should the company consider taking on given its internal cost of capital?

Select one:

a. A only

b. C only

c. A and C only

d. B only

since the cost of capital is 7%, the investment the company chooses should generate returns more than 7% so that the company can earn profits.

It is only investment a and c that would be suitable based on this criteria

in terms of experimental research, mcdonald’s charging different prices in the two cities relates to

answer decisions made by individual households and firms;