You are deciding between two mutually exclusive investment opportunities. Both require the same initial investment of $ 10

$10 million. Investment A will generate $ 2.1

$2.1 million per year(starting at the end of the firstyear) in perpetuity. Investment B will generate $ 1.8

$1.8 million at the end of the firstyear, and its revenues will grow at 2.9 %

2.9% per year for every year after that. Use the incremental IRR rule to correctly choose between investments A and B when the cost of capital is 6.8 %

6.8%. At what cost of capital would your decisionchange?