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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.

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%.

What is the NPV for this project?

What is the IRR for this project?

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