Question: Please show work and explain how you got the answer 7-10. You have been offered a very long term investment opportunity to increase your money
Please show work and explain how you got the answer
7-10. You have been offered a very long term investment opportunity to increase your money one hundredfold. You can invest $1000 today and expect to receive $100,000 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 be undertaken? What about the NPV rule? Do they agree
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