The Owner of a Number of Gas Stations Is Considering

question 3

Multiple Choice

The owner of a number of gas stations is considering installing coffee machines in his gas stations. It will cost $260,000 to install the coffee machines, and they are expected to boost cash flows by $111,428 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) 1.17%
• B) 2.34%
• C) 4.69%
• D) 5.86%

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Definitions:

Emotional Intelligence

Represents the ability to perceive, use, understand, manage, and handle emotions effectively in oneself and others, especially in interpersonal interactions.

Satisfaction with IT

A measure of how content users are with the information technology systems they use.

Satisfaction with Tasks

The degree to which individuals feel fulfilled or content with the tasks and responsibilities assigned to them in their professional roles.

Work Setting

The physical and social environment in which people perform their job duties, including the office, workspace, and company culture.