National Leasing is evaluating the cost of capital to use in its capital budgeting process. Over the recent past, the co

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National Leasing is evaluating the cost of capital to use in its
capital budgeting process. Over the recent past, the company has
averaged a return on equity of 11.7% and a return on investment of
8.7%. The company can currently borrow short-term money for
5.7%.
b. Without prejudice to your answer to
part a, identify why the company might choose
to use a cost of capital of 13% to evaluate capital expenditure
opportunities. (You may select more than one answer.
Single click the box with the question mark to produce a check mark
for a correct answer and double click the box with the question
mark to empty the box for a wrong answer. Any boxes left with a
question mark will be automatically graded as
incorrect.)
check all that apply