You are deciding between two mutually exclusive investment opportunities. Both require the same initialYou are considering an investment in a clothes distributer. The company needs $$106,000$ today and

expects to repay you $$124,000$ in a year from now. What is the IRR of this investment opportunity?

Given the riskiness of the investment opportunity, your cost of capital is $15\%.$ What does the IRR rule

say about whether you should invest?

What is the IRR of this investment opportunity?

The IRR of this investment opportunity is $\%.($Round to two decimal places.$)$

investment of $$9\mathrm{.}7$ million. Investment A will generate $$2\mathrm{.}14$ million per year $($starting at the end of the

first year$)$ in perpetuity. Investment B will generate $$1\mathrm{.}48$ million at the end of the first year, and its

revenues will grow at $2\mathrm{.}8\%$ per year for every year after that.

a$.$ Which investment has the higher IRR?

b$.$ Which investment has the higher NPV when the cost of capital is $7\mathrm{.}5\%?$

c$.$ In this case, for what values of the cost of capital does picking the higher IRR give the correct answer

as to which investment is the best opportunity?

a$.$ Which investment has the higher IRR?

The IRR of investment $A$ is $\%.($Round to the nearest integer.$)$