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Aardvark Software, Inc. can purchase all the stock of Zebra Computer Services for $1,000,000 in cash. Zebra is expected to generate net after-tax cash flows of $100,000 per year for each of the next ten years. Based solely on the cash flow analysis, Aardvark should; a. not purchase Zebra Computer Services. b. purchase Zebra Computer Services. c. purchase Zebra only if Aardvarks cost of capital is between 5% and 10%. d. purchase Zebra only if Aardvarks cost of capital is above 10%.

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