Store-It owns and operates self-storage units across the country. The firm is well established and has a cost of capital of 9 %. Stop n Drive operates several stations which supply bread and milk along with gasoline, diesel, and kerosene fuels. Stop n Drive's cost of capital is 13 %. Both companies are considering opening a chain of bakeries which would supply fresh baked goods for individual consumers. The internal rate of return on these bakeries is 11.5 %. Which firm or firms, if either, should open the bakery outlets?

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The Answer of Store-It owns and operates self-storage units across the country. The firm is well established and has a cost of capital of 9 %. Stop n Drive operates several stations which supply bread and milk along with gasoline, diesel, and kerosene fuels. Stop n Drive's cost of capital is 13 %. Both companies are considering opening a chain of bakeries which would supply fresh baked goods for individual consumers. The internal rate of return on these bakeries is 11.5 %. Which firm or firms, if either, should open the bakery outlets?

Store-It Owns and Operates Self-Storage Units Across the Country