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?
A)1.06%
B)2.34%
C)4.69%
D)5.28%
E)3.67%

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The Answer of 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?
A)1.06%
B)2.34%
C)4.69%
D)5.28%
E)3.67%

The Owner of a Number of Gas Stations Is Considering