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What howe cost in capital must be

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Reference no: EM132753485

Problem 1: The consulting firm of Howe and Biggs is currently conducting a large consulting assignment for Spaeth Industries. Howe has calculated that the financial holding costs of this 3-month project are $6,000. If the project will use $600,000 in supplies, labor, and overhead , Howe's cost in capital must be:

Option 1: None of these
Option 2: 8%
Option 3: 4%
Option 4: 12%

Reference no: EM132753485

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