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You are considering investing in a start - up project at a cost of $ 1 0 0 , 0 0 0 . You expect

You are considering investing in a start-up project at a cost of $100,000. You expect the project to return $500,000 to you in seven years. Given the risk of this project, your cost of capital is 20%. Calculate the NPV and IRR for this project. Based on your calculation, what decision should you make regarding this project? Briefly explain your answers.
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