Purchase $10$ new units at a cost of $ $800$ per unit. Each unit comes with a $2$ year warranty and is gold star

rated with a projected consumption of electricity of $ $25$ per unit per month, on average.

The utility that services your office currently charges $ $0\mathrm{.}20$ per kilowatt hour for transmission and $ $0\mathrm{.}15$ per

kilowatt hour for power supply.

Your new employer is a privately held corporation, and has revenue of $ $5,000,000$ per year and has positive

net operating cash flow and has been profitable for the last five years. Net Operating Margin, pre$-$tax, is approximately $10\%.$ In addition, the company has an unused $ $1,000,000$ line of credit at Citibank in New York City. The interest cost of the line is fixed until September $1,2024$ at $5\%$ and the line requires a monthly

payment, interest only until $24$ months after a use of the line of credit, at which point the line must be repaid. what is cost of debt?