Assume that Clean Tinahi Instrumento Co. has 2 milllion in assets. If it goes with a low liquidity plan for the asstes, it can earn a return of 18 percent but with a high liquidity plan the return will be 14 percent. if the firm goes with a short term financing plan, the financing costs on the 2 million will be 10 percent and with a long term financing plan, the financing costs on the 2 million will be 12 percent.
Compute the anticipated return after financing costs on the following asset-financing mix
1. most aggressive
2. most conservative two moderate approaches