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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

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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 $1.40 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? OA, 12% OB, 24% D. 26%

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