The owner of a number of gas stations is considering installing coffee machines in his gas stations. It will cost $280,000 to install the coffee machines, and they are expected to boost cash flows by $125,085 per year for their five - year working life. What must the cost of capital be if this investment has a profitability index of 1 ? A. 7.55% B. 9.44% C. 3.78% D. 1.89%