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You are considering investing in a start up company. The founder asked wou for $ 2 5 0 , 0 0 0 today and you
You are considering investing in a start up company. The founder asked wou for $ today and you expect to get the maxmum deviation allowable in the cosl of ceptal estimate to leave the deps on uncrenged.
What is the NPV of the invesiment opporturity?
The APP of the imestiment is Found to the nearest dolar
Shaild you undentake the investment opoortunty?
Since the MPY is you shouks the deall Seect from the drapdown merius
Calculate the IRR and use it to determine the maxmam devation alow able in the cost of capitai astimate lo leave the decsion unchanged.
The IRR is Round to two decimal places
The maximum sevanon allowabie in the cest of capital is
VRaund to two gec mal places.
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