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Question 1 (3 points) The owner of a number of gas stations is considering installing coffee machines in his gas stations. It will cost $200,000
Question 1 (3 points) The owner of a number of gas stations is considering installing coffee machines in his gas stations. It will cost $200,000 to install the coffee machines, and they are expected to boost cash flows by $50,000 per year for five year working-life. What must the cost of capital be if this investment has a profitability index of 1? 3.83% 7.01% 7.93% 14.88%
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