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Sister Pools sells outdoor swimming pools and currently has an aftertax cost of capital of 11.6 percent. Al's Construction builds and sells water features and
Sister Pools sells outdoor swimming pools and currently has an aftertax cost of capital of 11.6 percent. Al's Construction builds and sells water features and fountains and has an aftertax cost of capital of 10.8 percent. Sister Pools is considering building and selling its own water features and fountains. What is an appropriate cost of capital for this project?
| A. | 11.6% | |
| B. | 10.8% | |
| C. | 9.5% | |
| D. | 8.4% | |
| E. | 6.7% |
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