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

answer; purpose nondisclosure;