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Two mutually exclusive investment opportunities require an initial investment of $ 6 million. Investment A pays $ 1 . 7 million per year in perpetuity,
Two mutually exclusive investment opportunities require an initial investment of $ million. Investment A pays $ million per year in perpetuity, while investment pays $ million in the first year, with cash flows increasing by per year after that. At what cost of capital would an investor regard both opportunities as being equivalent?
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