How much money will harry have in this account

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Question: On the day Harry was? born, his parents put $1,200 into an investment account that promises to pay a fixed interest rate of 8 percent per year. How much money will Harry have in this account when he turns 18??

Two mutually exclusive investment opportunities require an initial investment of $6 million. Investment A then generates $1.80 million per year in? perpetuity, while investment B pays $1.50 million in the first? year, with cash flows increasing by 4% per year after that. At what cost of capital would an investor regard both opportunities as being? equivalent?

Reference no: EM133432577

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