AFB, Inc. purchases a new delivery van which is expected to increase cash flows for the next 10 years. AFB can finance the purchase with a standard 48 minus month vehicleloan, or by getting a 10 minus year loan from the bank. According to the hedgingprinciple, AFB should

A. use the 10minus year financing in order to match the cash flow stream from the asset with the financing repayments.

B. use the 48minus month loan since it matches the type of asset with the type of loan.

C. use either type offinancing, but hedge the risk in the options market.

D. avoid using either loan and finance the truck with current cash reserves to avoid interest expense.