Calculate the irr and use it to determine the maximum


You are considering investing in a start up company. The founder asked you for $ 200000 today and you expect to get $ 910 000 in 12 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.

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Financial Management: Calculate the irr and use it to determine the maximum
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