Question: Two friends consider opening a driving range for golfers. They estimate such a range could generate rentals of 20,000 buckets at $3 a bucket in

Two friends consider opening a driving range for golfers. They estimate such a range could generate rentals of 20,000 buckets at $3 a bucket in the first year, and expect rentals to grow at 750 buckets a year thereafter. The equipment requirements include ball dispensing machines, the ball pick-up, and the vehicle tractor that will cost $8,000, $2,000, and $8,000 respectively. The net working capital is $3,000 to start with, and is expected to grow at 5% per year. The annual fixed operating cost for balls and baskets will initially be $3,000 and is expected to grow at 5% per year. The fixed costs of leasing the land and its upkeep will be $53,000 per year. The above is an example of:

A.debt financing.
B.capital budgeting.
C.equity financing.
D.trade credit.
E.multilateral netting.

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