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You are considering investing in a start up company. The founder asked you for $ 3 0 0 , 0 0 0 today and you

You are considering investing in a start up company. The founder asked you for $ 300,000 today and you expect to get $ 990000 in 13 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.

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