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    Olentangy Health Care (OHC)

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    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

    My answer is C.

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    Solution Summary

    The expert examines Olentangy Health Care.