QUESTION 5: (19 marks) a) Discuss the risk-return trade-off experienced in working-capital management. (3 marks) b) What is the hedging principle or principle of self-liquidating debt? (4 marks) c) Calculate the effective cost of the following trade credit terms if the discount is forgone and payment is made on the net due date. Explain the relationship between period of post discount period and cost of foregoing discount. i. 2/10 net 50 ii. 2/15 net 60 iii. 2/20 net 45 (12 marks)