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Suppose instead that the sequestered carbon has to be sold on the London Carbon Exchange. Carbon prices have been extremely volatile, but Pollution Busters CFO

Suppose instead that the sequestered carbon has to be sold on the London Carbon Exchange. Carbon prices have been extremely volatile, but Pollution Busters

CFO learns that average rates of return from investments on that exchange have been about

20 % .

She thinks this is a reasonable forecast for the future. What is the opportunity cost of capital in this case?

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