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NuPress Valet has an improved version of its hotel stand.The investment cost is expected to be £72 million and will return £13.5 million for 5 years in net cash flows.The ratio of debt to equity is 1 to 1.The cost of equity is 13%,the cost of debt is 9%,and the tax rate is 34%.The appropriate discount rate,assuming average risk,is:
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Strategic Management
The ongoing planning, monitoring, analysis, and assessment of all that is necessary for an organization to meet its goals and objectives.
Competitive Advantage
A unique attribute or capability that allows an organization to outperform its competitors, leading to greater sales or margins and/or market share.
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