Posted: April 17th, 2017

You are deciding between two mutually exclusive investment opportunities. Both require the same initial investment of $10 million.

You are deciding between two mutually exclusive investment opportunities. Both require the same initial investment of $10 million. Investment A will generate million per year (starting at the end of the first year) in perpetuity. Investment B will generate generate $1.5 million at the end of the first year and its revenues will grow at 2% per year for every year after that.