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7. Company A and Company B are separate rms that are both considering a diamond exploration project. Company A is in the precious gem mining

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7. Company A and Company B are separate rms that are both considering a diamond exploration project. Company A is in the precious gem mining business and has an after-tax cost of capital of 13 percent. Company B is in the precious gem retail business. Company B's after-tax cost of capital is 10 percent. The project under consideration has initial costs of $315,000 and anticipated annual cash inows of $57,000 a year for ten years. Which rm(s), if either, should accept this project? A. Company A only B. Company B only C. both Company A and Company B E. cannot be determined without further information

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