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You are considering investing in a start up company. The ounder asked you for $230.000 today and you expect to get $930,000 in 12 years.
You are considering investing in a start up company. The ounder asked you for $230.000 today and you expect to get $930,000 in 12 years. Given he riskiness of the investment opportunity, your cost of capital is 27%. 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 shouldthe deal (Select tom the drop-dowm 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 L% (Roundtot o decimal places)
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