You are considering investing in a start up company. The founder asked you for $$230,000$ today and you expect to get $$930,000$ in $14$ years. Given the riskiness of the investment opportunity, your

cost of capital is $20\%.$ 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.

If the cost of capital is $20\%,$ the NPV of the investment is $

$($Round to the nearest cent.$)$

Since the NPV is

$,$ you should

the deal! $($Select from the drop$-$down menus.$)$

The IRR is

$\%.($Round to two decimal places.$)$

The maximum deviation allowable in the cost of capital is

$\%.($Round to two decimal places.$)$