Conduct a capital budgeting analysis

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Problem - CAPITAL BUDGETING ANALYSIS - The Stanton Stationery Shoppe wants to acquire The Carlysle Card Gallery for $450,000. Stanton expects the merger to provide incremental earnings of about $70,000 a year for 10 years. Carol Stanton has calculated the marginal cost of capital for this investment to be 8%. Conduct a capital budgeting analysis for Stanton to determine whether she should purchase The Carlysle Card Gallery.

Reference no: EM132802890

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