Accounting

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Present value analysis-cost of capital National Leasing is evaluating the cost of capital to use in its capital budgeting process. Over the recent past, the company has averaged a return on equity of 12% and a return on investment of 9%. The company can currently borrow short-term mA. Which of the preceding rates is most relevant to deciding the cost of capital to use? Explain your answer.oney for 6%.Required:

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