The greater the potential reward, ________
A) The riskier the investment is likely to be
B) The more the investment is likely to cost
C) The less risky the investment is likely to be
D) The more it will cost
E) The more established the investment is likely to be
A
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Stemway requires a new manufacturing facility. Management found three locations; all of which would provide needed capacity, the only difference is the price. Location A may be purchased for $500,000. Location B may be acquired with a down payment of $100,000 and annual payments at the end of each of the next twenty years of $50,000. Location C requires $40,000 payments at the beginning of each of the next twenty-five years. Assuming Stemway's borrowing costs are 8% per annum, which option is the least costly to the company?
a. Location A. b. Location B. c. Location C. d. Location A and Location B.
A well-known cosmetic company in New York City added new product lines in order to increase its business. In other words, it ________
A) lengthened its existing product line B) decreased its product line consistency C) widened its product mix D) engaged in market diversification E) engaged in social marketing