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Benediction Cummerbund LLC is considering expanding its line of tuxedos to include a new disco selection. In order to add this line, they will need
Benediction Cummerbund LLC is considering expanding its line of tuxedos to include a new
"disco" selection. In order to add this line, they will need to invest $ up front. This project
is expected to increase the cash flows for the company by $ per year for years.
a If the company's cost of capital is should they invest in this line?
b At what cost of capital would they be indifferent in investing or not investing?
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