40. Tesla Corp. has a permanents funding requirement of $150,000 in operating assets and seasonal funding requirements that vary between $0 and $700,000 and average of $200,000. If Tesla can borrow short term funds at 6%, and long term funds at 8%, and it can earn 5% on the investment of surplus balances, the cost of long term financing of the conservative strategy is: * $45,000 $53,000 $68,000 $28,000
40. Tesla Corp. has a permanents funding requirement of $150,000 in operating assets and seasonal funding requirements that vary between $0 and $700,000 and average of $200,000. If Tesla can borrow short term funds at 6%, and long term funds at 8%, and it can earn 5% on the investment of surplus balances, the cost of long term financing of the conservative strategy is: * $45,000 $53,000 $68,000 $28,000
Chapter9: Capital Budgeting Techniques
Section: Chapter Questions
Problem 3PROB
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