Corporate Finance
Question # 00020129
Posted By:
Updated on: 07/17/2014 11:27 PM Due on: 07/19/2014
You have been offered a very long-term investment opportunity to increase your money one hunderedfold. You can invest $700 today and expect to receive $125,000 in 40 years. Your cost of capital for this i(very risky) opportunity is 16%. What is the IRR rule say about whether the investment should be undertaken? what about the NPV rule? Do they agree?
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Rating:
/5
Solution: Corporate Finance