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You are deciding between two mutually exclusive investment opportunities Both require the same intal investment of 5104 million Investment Awil generate 51 81 milion per
You are deciding between two mutually exclusive investment opportunities Both require the same intal investment of 5104 million Investment Awil generate 51 81 milion per year starting at the end of the first year) in perpetualty Investment B will generate 51 44 million at the end of the first year and its revenues wil grow at 23% 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 75% c. In this case, when does piding the higher give the correct answer as to which investment is the best opportunity? Help
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