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Problem 1-24 Cost of Capital (LO5) Pollution Busters Inc. is considering a purchase of 10 al carbon sequesters for $100,000 apiece. The sequesters last for

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Problem 1-24 Cost of Capital (LO5) Pollution Busters Inc. is considering a purchase of 10 al carbon sequesters for $100,000 apiece. The sequesters last for only 1 year before becoming saturated. Then the carbon overnment a. Suppose the government guarantees the price of carbon price, the payoff after 1 year is $115,000 for sure. What is the opportunity cost of capital for this investment? Opportunity cost of capital U.S. Treasuries with 3 year to maturity

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