Which will have the higher IRR

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Question - You are deciding between two mutually exclusive investment opportunities. Both require the same initial investment of $10 million. Project A will generate $2.0 million per year (starting at the end of the first year) forever. Project B will generate $1.5 million at the end of the first year and the cash flows will then grow at a rate of 2% per annum forever. Which will have the higher IRR?

Reference no: EM132955975

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