You are considering investing in a start$-$up company. The founder asked you for $$220,000$ today, and you expect to get $$1,030,000$ in

eight years. Given the riskiness of the investment opportunity, your cost of capital is $24\%.$ 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?

Since the $NPV$ is

you should

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.$)$