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oints each eptual questions, all worth Unless otherwise specified, assume all bonds make semi-annual coupon payments and have $1.000 future value. Unless otherwise specified, ssume

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oints each eptual questions, all worth Unless otherwise specified, assume all bonds make semi-annual coupon payments and have $1.000 future value. Unless otherwise specified, ssume all interest rates are listed as APRs. While working on the quiz, you may utilize scratch paper, a pen/pencil and a calculator (or calculators). You may NOT use the problem set. eBook. somework. LearnSmart, notes, formulas, or any other printed, hand-written or digital resources or materials. Good luck! Question 7 8 pts BrewHaus is looking to buy a new set of copper drums. These new additions will expand capacity, allowing BrewHaus to collect incremental cash flows of $35,000 per year for the next four years. At the end of the fourth year, Newton will sell these drums for a net cash flow of $10,000. The purchase price of the drums is $100,000. At what cost of capital (required return) is BrewHaus indifferent between purchasing and not purchasing the drums? At what cost of capital should BrewHaus make the purchase? Indifferent at 17.66%; purchase if cost of capital 17.66% Indifferent at 17.28%; purchase if cost of capital > 17.28% Indifferent at 50.00%; purchase if cost of capital 50.00% Indifferent at 20.35% purchase if cost of capital > 20.35% Previous Next No new data to the 5 do

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