You are considering investing in a start up company. The founder asked you for $ 300 comma 000 today and you expect to get$ 960 comma 000 in 12 years. Given the riskiness of the investment opportunity, your cost of capital is 22 %. 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 (NEG OR POSTITIVE) , you should (TAKE OR NOT TAKE) 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

nothing%.

(Round to two decimal places.)