The owner of a number of gas stations is considering installing coffee machines in his gas stations. It will cost $290,000 to install the coffee machines, and they are expected to boost cash flows by...

Extracted text: The owner of a number of gas stations is considering installing coffee machines in his gas stations. It will cost $290,000 to install the coffee machines, and they are expected to boost cash flows by $124,286 per year for their five-year working life. What must the cost of capital be if this investment has a profitability index of 1? O A. 4.69% O B. 5.86% O C. 1.17% O D. 2.34%