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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
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 $120,000 per year for their five-year working life. What must the cost of capital be if this investment has a profitability index of 1? Question 3 options: 1) 1.06% 2) 2.34% 3) 4.69% 4) 5.28%
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