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5. You are deciding between two mutually exclusive investment opportunities. Both require the same initial investment of $10.0 million. Investment A will generate $2.00 million

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5. You are deciding between two mutually exclusive investment opportunities. Both require the same initial investment of $10.0 million. Investment A will generate $2.00 million per year (starting at the end of the first year) in perpetuity. Investment B will generate $1.50 million at the end of the first year, and its revenues will grow at 2.0 % per year for every year after that. Equity cost of capital = 7%. a. Which investment has the higher IRR

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