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You have been offered a very long-term investment opportunity to increase your money one hundredfold. You can invest $1,300today and expect to receive $ 130000 in40years. Your cost of capital for this (very risky) opportunity is 24%.

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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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92837023

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