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The drop down options for one of the questions was Since the NPV is (NEGATIVE or POSITIVE), you should (NOT TAKE or TAKE) the deal!
The drop down options for one of the questions was
Since the NPV is (NEGATIVE or POSITIVE), you should (NOT TAKE or TAKE) the deal!
You are considering investing in a start up company. The founder asked you for $300,000 today and you expect to get $900,000 in 11 years. Given the riskiness of the investment opportunity, your cost of capital is 29%. 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. What is the NPV of the investment opportunity? The NPV of the investment is $. (Round to the nearest dollar.) Should you undertake the investment opportunity? the deal! (Select from the drop-down menus.) Calculate the IRR and use it to determine the maximum deviation allowable in the cost of capital estimate to leave the decision unchanged. The IRR is%. (Round to two decimal places.) The maximum deviation allowable in the cost of capital is%. (Round to two decimal places.) Since the NPV is you should
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