Question: please show step by step if solving by excel You are deciding between two mutually exclusive investment opportunities. Both require the same initial investment of

 please show step by step if solving by excel You are

please show step by step if solving by excel

You are deciding between two mutually exclusive investment opportunities. Both require the same initial investment of $10 million. Investment A will generate $2.4 million per year (starting at the end of the first year) in perpetuity. Investment B will generate $2.2 million at the end of the first year, and its revenues will grow at 2.3% per year for every year after that. Use the incremental IRR rule to correctly choose between investments A and B when the cost of capital is 7.2%. At what cost of capital would your decision change? The incremental IRR is 27.60%. (Round to two decimal places.) You should take Investment B. (Select from the drop-down menu.) At what cost of capital would your decision change? (Select from the drop-down menu.) The decision would change if the cost of capital is above the IRR

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