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Pou are deciding between two mutualy exclusive investment opportunities. Both require the samo initial investment of $9.7 million. investmont A will gerignate 32 . 03

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Pou are deciding between two mutualy exclusive investment opportunities. Both require the samo initial investment of $9.7 million. investmont A will gerignate 32 . 03 milion per year (starting at the end of the firs year) in perpetuly Investment B will genetate $1.47 milion af the end of the first year, and its revenues wall grow at 2.7% per year for every year after that. a. Which investment has the higher IRR? b. Which investment has the higher NPV when the cost of capital is 6.2% ? c. In this caso, for what values of the cost of capital does picking tho higher IRR give the correct answer as to which investrnent is the best opportunity? a. Which investrent has the Highee IRR? The IRR of investment A is 4. (Round to the nearest integer.)

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