Highest roi in first year of production


Which of these scenarios would be the best choice for a company looking to increase capacity and will yield the highest ROI in their first year of production?

a. Buy 100 units of capacity. Finance the $3,400 purchase entirely with a new bond.

b. Buy 200 units of capacity. Finance the $6,800 purchase entirely with a new bond.

c. Buy 100 units of capacity. Finance the $3,400 purchase entirely with a stock issue.

d. Buy 200 units of capacity. Finance the $6,800 purchase entirely with a stock issue.

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Accounting Basics: Highest roi in first year of production
Reference No:- TGS095517

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