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Two mutualy exclusivo investment opportunibes require an inikal investment of $6 milion. Invesiment A then genorates $1,60 milion per year in perpetuly, while inestment 8

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Two mutualy exclusivo investment opportunibes require an inikal investment of $6 milion. Invesiment A then genorates $1,60 milion per year in perpetuly, while inestment 8 pays $ t 40 millon in the first year, weh eash fows increasing by 3% per yoar afler that. At what cost of capital woud an livestor regard both opportunites as being equivalent? A. 11% B. 2% C. 10% D. 5%

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