You are considering investing in a start up company. The founder asked you for $200,000 today and you expect to get$1,000,000 in 9 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.

What is the NPV of the investment opportunity?

I need help with getting assistance with the formula for NPV, I don't use excel and I can't come up with the correct formula doing it by hand, can you assist or can I only get NPV with excel. Thank you

Question:

The npv of the investment is $ ______.