Question
You are deciding between two mutually exclusive investment opportunities. Both require the same initial investment of $10.2 million. Investment A will generate $1.81 million per
You are deciding between two mutually exclusive investment opportunities. Both require the same initial investment of $10.2 million. Investment A will generate $1.81 million per year (starting at the end of the first year) in perpetuity. Investment B will generate $1.48 million at the end of the first year, and its revenues will grow at 2.2% 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 7.8%?
I need NPV / IRR for both and the determination
time now is 0720 2/13/17 needed ASAP
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