Chapter 1 HW G Help Save& Exit Submit Smedd 5 Pollution Busters Inc. is considering a purchase ot 10 additional carbon sequesters tor $106,000 apiece. The sequesters last for only 1 year before becomling saturated. Then the carbon is sold to the government. a. Suppose the govel guaehe price ol carbon. Al this price, e payoff aller 1 year is $125.080 fo sure. Whal is Ihe opportunity cost of capital for this investment? 10 Ponts portunity cost ot capals wth yer to stuy b-1. Suppose instead that the sequestered carbon has to be sold on the London Carbon Exchange. Carbon prices have been extremely volatile, but Pollution Husters' C.HO learns that average rates of return from investments on that exchange have been about 23%. She thinks this is a reasonable forecast for the future. What is the opportunity cost ofcapital in this case? Oppprtunily cost of capilal b-2. Is the purchase of additional sequesters a worthwhile capital investment? Yes Prey 5 or 10