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You are considering investing in a start-up company. The founder asked you for $290,000 today and you expect to get $1,070,000 in eight years. Given

You are considering investing in a start-up company. The founder asked you for $290,000 today and you expect to get $1,070,000 in eight years. Given the riskiness of the investment opportunity, your cost of capital is 21%. What is the NPV of the investment opportunity? Should you undertake the investment opportunity? Calculate the IRR and explain the decision process according to IRR.

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