Which investment has the higher npv when cost of capital

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You are deciding between two mutually exclusive investment opportunities. Both require the same initial investment of $9.8 million. Investment A will generate $2.06 million per year? (starting at the end of the first? year) in perpetuity. Investment B will generate $1.49 million at the end of the first? year, and its revenues will grow at 2.5% 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 6.6%??

Reference no: EM131343667

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