Problem:
Stuandlu, Corp have financing needs for $385,000 in Assets for the new dog treat company they started. The low liquidity return on assets is likely to be 16% and the high liquidity return is likely to be 9%. Their financing options are short-term for 4% and long-term for 7%. They pay 38% in tax.
Required:
Question: What is the NI projected for the conservative, aggressive and low liquidity hybrid plan?
Note: Show supporting computations in good form.