Which activity is part of finance's analytical work when evaluating a project?

• A. Marketing the project to customers
• B. Designing product prototypes
• C. Assessing whether to borrow money, issue stock, or expand facilities
• D. Hiring project staff

Answer: (C)

Financing decisions drive how a project is evaluated. When finance analyzes a project, the focus is on how to fund it and what capital structure to use, weighing funding options against their cost and impact on cash flows and overall value. The best choice captures this by describing whether to borrow money, issue stock, or expand facilities, since these are the funding and financing decisions that shape the project's feasibility and risk.

Marketing to customers, designing product prototypes, and hiring project staff belong to marketing, product development, and human resources, respectively, and are not the financial analyses used to evaluate funding and capital implications of a project.