Project A requires an upfront investment of

$40

million and generates a constant

$4

million every year, starting in year 1 , in perpetuity. Project B requires an upfront investment of

$80

million and generates a constant

$6

million every year, starting in year 1 , in perpetuity. What is the IRR of the cash flows of switching from project B to project A?\ a. 5.00 percent.\ b. 6.00 percent. cross out\ c. 7.00 percent. cross out\ d. 4.00 percent. cross out\ e. 3.00 percent. cross out cross out

Project A requires an upfront investment of $40 million and generates a constant $4 million every year, starting in year 1 , in perpetuity. Project B requires an upfront investment of $80 million and generates a constant $6 million every year, starting in year 1 , in perpetuity. What is the IRR of the cash flows of switching from project B to project A? a. 5.00 percent. cross out b. 6.00 percent. cross out c. 7.00 percent. cross out d. 4.00 percent. cross out e. 3.00 percent. cross out