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The owner of several gas stations is considering installing coffee machines in his gas stations. It will cost $500,000 to install the coffee machines, and

The owner of several gas stations is considering installing coffee machines in his gas stations. It will cost $500,000 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 0?

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