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Two mutually exclusive investment opportunities require an initial investment of $7 million. Investment A pays $2.1 million per year in perpetuity, while investment B pays

Two mutually exclusive investment opportunities require an initial investment of $7 million. Investment A pays $2.1 million per year in perpetuity, while investment B pays $1.3 million in the first year, with cash flows increasing by 4% per year after that. If an investor regards both opportunities as being equivalent, the cost of capital would be ________%.

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