finance Investment options
You are the CEO of Warming-Up Inc. The firm faces the following five investments that are mutually exclusive (i.e., you can only pick one). Which one would you pursue?
A. Increase next year’s net income by $70M, increase long-term debt by $280M, and increase the market value of Warming-Up’s equity by $490M.
B. Increase next year’s net income by $140M, increase long-term debt by $70M, and increase the market value of Warming-Up’s equity by $280M.
C. Increase next year’s net income by $705M, increase long-term debt by $140M, and increase the market value of Warming-Up’s equity by $665M.
D. Increase next year’s net income by $140M, decrease long-term debt by $70M, and increase the market value of Warming-Up’s equity by $540M.
E. Increase next year’s net income by $210M, increase long-term debt by $210M, and increase the market value of Warming-Up’s equity by $420M.