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May i know how to deal with the whole Question 5? Thank you so much Q5a)Two mutually exclusive investment opportunities require an initial investment of

May i know how to deal with the whole Question 5?
Thank you so much image text in transcribed
Q5a)Two mutually exclusive investment opportunities require an initial investment of $8 million. Investment A pays \$2.25 million per year in perpetuity, while investment B pays $1.05 million in the first year, with cash flows increasing by 2.99% per year after that. At what cost of capital would an investor regard both opportunities as being equivalent? Express your response in percent but without the percent sign. Round to the nearest two decimal places. Q5B)Bill is considering opening a self-serve grooming center in a storeffont. The grooming equipment will cost $386,107, to be paid immediately. Bill expects after-tax cash inflows of $102,430 annually for seven years, after which he plans to scrap the equipment and retire. The first cash inflow occurs at the end of the first year. Assume the required return is 13 percent. What is the project's profitability index (PI)? Round your response to the nearest three decimal points. Q5c)The owner of several gas stations is considering installing coffee machines in his gas stations. It will cost $500,000 to install the coffee machines, and they are expected to boost cash flows by $120,000 per year for their five-year working life. What must the cost of capital be if this investment has a profitability index of 0 ? Express your response in percent but without the percent sign. And round it to the nearest two decimal points. Q5D)TMI is considering purchasing an equipment for its production. The initial cost of the machine is $798,537. The equipment costs $9,577 a year to operate. The equipment has a life of 4 years before it is replaced. What is the equivalent annual cost of this equipment if the required return is 9.12%. Round your answer to whole dollars

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