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You are deciding between swo matuaty exclusive itwestment opportunifes. Both requive the same inital investment of 59.5mallon. Investment A will generate 52.12 millon per ysar
You are deciding between swo matuaty exclusive itwestment opportunifes. Both requive the same inital investment of 59.5mallon. Investment A will generate 52.12 millon per ysar fotaring at the end of the first year in perpetuly trivestment B will genecale $1.55 milion at the end of the fint year, and as revenues will grow at 29s per your for every year after that. a. Which investment has the higher IRR?? b. Which investment has the highar NPV when the cost of captai is 7.3\%? 6. In this case, for whar values of the cost of eapitai does picting the higher IRR give the oovrect answer as to which investment is the beet opporturity
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