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You have been offered a very long term investment opportunity to increase your money one hundredfold. You can invest $1100 today and expect to receive
You have been offered a very long term investment opportunity to increase your money one hundredfold. You can invest $1100 today and expect to receive $110,000 in 40 years. Your cost of capital for this (very risky) opportunity is 19%. What does the IRR rule say about whether the investment should be undertaken? What about the NPV rule? Do they agree?
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