Class 1 1. You are deciding between two mutually exclusive projects. Both require the same initial investment of $10 million. Project A will generate $2 million per year in perpetuity. Project B will generate $1.5 million in the first year and its revenues will increase 2% per year for every year after that. a. Which investment has the higher IRR? b. If the cost of capital is 7%, which investment has the higher NPV? c. Which project should you choose? How can you adapt the IRR rule so that it results in the right decision