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You are considering investing in a start - up company. The founder asked you for $ 2 9 0 , 0 0 0 today and

You are considering investing in a start-up company. The founder asked you for $290,000 today and you expect to get $1,070,000 in eight years. Given the riskiness of the investment oppor-tunity, your cost of capital is 21%. 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. Can you please calculate it without using exel? thank you!

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