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Two mutualy exclusive investment opportunities require an initial investment of $7 million. Investment A then generates $1.80 million per year in perpetuity, while irvestment B

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Two mutualy exclusive investment opportunities require an initial investment of $7 million. Investment A then generates $1.80 million per year in perpetuity, while irvestment B pays $1.50 million in the first year, with cash flows increasing by 5% per year after that. At what cost of capital would an investor regard both opportunities as being equivalent? A. 30% B. 8% C. 33% D. 15%

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