You are considering investing in a start-up company. The founder asked you for

$300,000

today, and you expect to get

$1,090,000

in

14

years. Given the riskiness of the investment opportunity, your cost of capital is

27%.

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.

Question content area bottom

Part 1

What is the NPV of the investment opportunity?

The NPV of the investment is

$enter your response here.

(Round to the nearest dollar.)