The Stanton Stationery Shoppe wants to acquire TheCarlysle Card Gallery for $450,000. Stanton expects the merger to provide incremental earningsof about $70,000 a year for 10 years. Carol Stanton has calculated the marginal cost ofcapital for this investment to be 8%. Conduct a capital budgeting analysis for Stanton todetermine whether she should purchase The Carlysle Card Gallery.

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