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You have been offered a very long-term investment opportunity to increase your money one hundredfold. You can invest $700 today and expect to receive $70,000
You have been offered a very long-term investment opportunity to increase your money one hundredfold. You can invest $700 today and expect to receive $70,000 in 40 years. Your cost of capital for this (very risky) opportunity is 21%. What does the IRR rule say about whether the investment should be undertaken? What about the NPV rule? Do they agree? What is the IRR? The IRR of this investment opportunity is %. (Round to two decimal places.) What does the IRR rule say about whether the investment should be undertaken? The IRR rule says that you (Select from the drop-down menu.) What is the NPV? The NPV for the investment is $. (Round to the nearest cent.) What does the NPV rule suggest? The NPV rule says that you (Select from the drop-down menu.) Do they agree? Both rules agree- (Select from the drop-down menu.)
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