Financing cost - It refers to the expenses associated with borrowing money or obtaining capital to finance a business, project, or investment. These costs can vary depending on the source of financing.

Investment cost - Investment cost refers to the expenses or outlays incurred when acquiring assets, securities, or projects with the expectation of generating future income or returns. These costs are associated with the purchase, development, or maintenance of an investment and can vary widely depending on the type of investment.

Weighted Average Cost of Capital (WACC) - It is a financial metric used to determine the average cost of financing for a company, taking into account the various sources of capital it uses to operate and grow. It's a crucial tool for assessing the feasibility of investment projects and determining the minimum return a company should earn on its investments.

Factors affecting Financing decision 

Fixed Operating Costs: If a business has high fixed operating costs (e.g., building rent, Insurance premium, Salaries, etc.), It must reduce fixed financing costs.