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Business, 12.03.2020 01:45 andreagrimaldo4

In 20X4, Olentangy Health Care (OHC)'s cost of capital was 6%. Its investments on a historical cost valuation basis are $80,000, on a replacement cost basis are $100,000, and on a current market value basis are $110,000. If you were on OHC's board, what minimum level of annual cash flow would you require in order to continue operations and proceed with planned significant new investments?

A. $4,800

B. $6,000

C. $6,600

D. $8,000

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Answers: 2

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