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OA. 11% B. 2% OC. 10% OD. 5% Two mutually exclusive investment opportunities require an initial investment of $6 million. Investment A then generates $1.60

OA. 11% B. 2% OC. 10% OD. 5% Two mutually exclusive investment opportunities require an initial investment of $6 million. Investment A then generates $1.60 million per year in perpetuity, while investment B pays $1.10 million in the first year, with cash flows increasing by 3% per year after that. At what cost of capital would an investor regard both opportunities as being equivalent? 0 0 This que CIT points) po
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the firat year, whe ceah flows increasing by 3% per yeir after that, Al what cost ef capilal would an inventor regard boch opportunities as being equiraient? A. 114s B. 2% c. 10% 0. 5%

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