The Owner of a Number of Gas Stations Is Considering

question 80

Multiple Choice

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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Definitions:

Career Anchors

Individuals' self-perceived talents, values, and motives that guide their career choices and satisfaction.

Self-perceived Talents

An individual's belief in their own abilities and skills, which may not necessarily align with external assessments.

Career Decisions

The process of making choices related to one's professional path, including selecting jobs, changing fields, or pursuing further education.

Old Career

A traditional career model characterized by long-term employment, linear progression, and loyalty to a single employer.