You are deciding between two mutually exclusive investment opportunities. Both require the same initial investment of $10 million. Investment A will generate $2.3 million per year(starting at the end of the first year) in perpetuity. Investment B will generate $2.1 million at the end of the firstyear, and its revenues will grow at 2.8% per year for every year after that.

A) Use the incremental IRR rule to correctly choose between investments A and B when the cost of capital is 6.2%.

B) What is the incremental IRR?