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Two mutually exclusive investment opportunities require an initial investment of 56 million. Investment A then generates $2.00 milion per year in perpetuity, while investment B

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Two mutually exclusive investment opportunities require an initial investment of 56 million. Investment A then generates $2.00 milion per year in perpetuity, while investment B pays $1.09 million in the first year, with cash flows increasing by 5% per year alter that. At what cost of capital would an investor regard both opportunities as being equivalent? A. 10% B. 3% C. 11% D. 5%

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