The owner of a number of gas stations is considering installing coffee machines in his...
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The owner of a number of gas stations is considering installing coffee machines in his gas stations. It will cost $260,000 to install the coffee machines, and they are expected to boost cash flows by $111,428 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. 1.17% B. 4.69% C. 5.86% D. 2.34%
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