The Return on Investment (ROI) of a company ranges between 10-12% for the past three years. To finance its future fixed capital needs, it has the following options for borrowing debt:
Option ‘A’: Rate of interest 9%
Option 'B': Rate of interest 13%
Which source of debt, 'Option A’ or 'Option B', is better? Give reason in support of your answer. Also state the concept being used in taking the decision.