Hash H.

asked • 01/20/21

check description please

Question:

1.      Using the notes for Seminar 6 that are on Moodle in the Topic 6 area, explain briefly the two types of capital that are included in the WACC (Weighted Average Cost of Capital).



2.      I want to start my own food delivery business. I can purchase at push bike for $300 or a motor scooter for $1000.


a.      What are two (2) factors that I should consider when deciding which to purchase and briefly explain why they are important?



b.     The WACC for the push bike is 3%. The WACC for the motor scooter is 9%. If my expected return in operating the business is 7%, what should I do?

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