Two mutually exclusive investment opportunities require an initial investment of $7 million.

investment a pays $2.0 million per year in perpetuity, while investment b pays $1.4 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? a) 7%
b) 3%
c) 13%
d) 15%

Match the terms with their correct definition. terms: 1. accounts receivable 2. other receivables 3 debtor 4. notes receivable 5. maturity date 6. creditor definitions: a. the party to a credit transaction who takes on an obligation/payable. b. the party who receives a receivable and will collect cash in the future. c. a written promise to pay a specified amount of money at a particular future date. d. the date when the note receivable is due. e. a miscellaneous category that includes any other type of receivable where there is a right to receive cash in the future. f. the right to receive cash in the future from customers for goods sold or for services performed.