The owner of a number of gas stations is considering installing coffee machines in his gas stations. It will cost $270,000 to install the coffee machines, and they are expected to boost cash flow by $120,536 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) 3.78%, 

B) 7.55%, 

C) 9.44%, 

D) 1.89%

Answer rating: 100% (QA)

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