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Sashi and Leon were having marital problems and had an argument one morning over whether or not Leon should buy a motorbike. Sashi went to her sister Nancy's home where the two women talked about life and drank vast quantities of wine. Very drunk, Sashi decided everything was her fault. She went to a local motorbike store, selected one she knew Leon wanted, but had rejected as being too expensive, and paid for it with her credit card. The salesman had no idea she was drunk. The next day, she had no memory of the transaction and was horrified to find out what she had done. Sashi discovered the sales slip and the motorbike outside and called the company at once to tell them she is returning it immediately.
Cost of Capital
The rate of return that a company must earn on its investment projects to maintain its market value and attract funds.
Cost of Capital
The return rate that a company must earn on its projects to maintain its market value and attract funds.
Variable Cost
Costs that change in proportion to the level of production or sales, such as materials and labor.
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