You have been offered a verylong-term investment opportunity to increase your money one hundredfold. You can invest $1,600 today and expect to receive $160,000 in 40 years. Your cost of capital for this(very risky) opportunity is 25%. What does the IRR rule say about whether the investment should beundertaken? What about the NPVrule? Do theyagree?

What is the IRR?

The IRR of this investment opportunity is

nothing

%. (Round to one decimalplace.)

What does the IRR rule say about whether the investment should beundertaken?

The IRR rule says that you

should be indifferent

should invest

should not invest

. (Select from thedrop-down menu.)

What is the NPV?

The NPV for the investment is $

nothing

. (Round to the nearestcent.)

What does the NPV rulesuggest?

The NPV rule says that you

should be indifferent

should not invest

should invest

. (Select from thedrop-down menu.)

Do theyagree?

Both rules agree

do not undertake the investment

undertake the investment

. (Select from thedrop-down menu.)