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hapter Problems 4.40. You can invest in a project with returns that depend on the amount of your investment. Specifically, the formula relating next year's

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hapter Problems 4.40. You can invest in a project with returns that depend on the amount of your investment. Specifically, the formula relating next year's payoff (cash flow) to your investment today is C,-V-Co-$0.1, where Co and C1 are measured in millions of dollars. For example, if you invest $500,000 in the project today, it will return v$0.5-$0.1 $0.632 million next year. The prevailing interest rate is 6% per annum. Use a spreadsheet to answer the following two ay me of questions: 1. What is the IRR-maximizing investment choice of Co? What is the NPV at this level? n 2. What is the NPV -maximizing investment choice of nt Co? What is the IRR at this level

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