Question: 4. You are evaluating whether to retire your current computer modem product and replace it with a new modem that incorporates new features. Which of

 4. You are evaluating whether to retire your current computer modem

4. You are evaluating whether to retire your current computer modem product and replace it with a new modem that incorporates new features. Which of the following would be relevant to your decision-making process? A) An expected increase in net working capital investment of $3,000. B) An expenditure of S10,000 related to initial market survey of the marketability of new modem product C)Opportunity costs regarding an equipment you own with a market value of S30,000 that can be used to build the new modems. D) A and C. 5. Which of the following is not correct? A) The cost of equity is the return that equity investors require on their equity investment in the firm B) The cost of equity can be found by either the dividend growth approach or the SML approach. C) The cost of debt is the return that lenders require on the firm's equity capital D) The cost of preferred stock is the return that preferred stock holders require on the firm's debt capital

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