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Q.1 You are thinking to invest in a new business called as Azadi Limited Company. Your partner told you to invest $200,000 today with expectation

Q.1 You are thinking to invest in a new business called as Azadi Limited Company. Your partner told you to invest $200,000 today with expectation to receive $1,000,000 in 9 years. The cost of capital of that business opportunity is 20%. What is the NPV of the investment opportunity? Should you undertake the investment opportunity? Calculate the IRR and use it to determine the maximum deviation allowable in the cost of capital estimate to leave the decision unchanged.?

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