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You are asked to invest in a company the founder asked you for $290,000 today and you expect to get $930,000 in 14 years. Given
You are asked to invest in a company the founder asked you for $290,000 today and you expect to get $930,000 in 14 years. Given the riskiness of the investment opportunity, your cost of capital is 25% What is 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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