1. Discuss the three advantages that an organization can benefit from short-term financing. Provide at least one example.
2. What is the 'cheapest' form of corporate financing and what is the most 'expensive' form of corporate financing? Cite factors affecting your selection.
3. When we look at the NPV profiles for two projects, what exactly happens at the crossover point? If the WACC associated with the crossover point just so happens to equal the firm’s WACC, which project, assuming they are mutually exclusive, should the firm select: project L or project S?