You have been offered a very long-term investment opportunity to increase your money one hundredfold. You can invest $1,800 today and expect to receive $180,000 in 40 years. Your cost of capital for this (very risky) opportunity is 16%. What does the IRR rule say about whether the investment should be undertaken? What about the NPV rule? Do they agree? What is the IRR? The IRR of this investment opportunity is%. (Round to one decimal place.) What does the IRR rule say about whether the investment should be undertaken? The IRR rule says that you (Select from the drop-down menu.) What is the NPV? The NPV for the investment is $ What does the NPV rule suggest? The NPV rule says that you (Round to the nearest cent.) (Select from the drop-down menu.)

You have been offered a very long-term investment opportunity to increase your money one hundredfold. You can invest $1,800 today and expect to receive $180,000 in 40 years. Your cost of capital for this (very risky) opportunity is 16%. What does the IRR rule say about whether the investment should be undertaken? What about the NPV rule? Do they agree? What is the IRR? The IRR of this investment opportunity is%. (Round to one decimal place.) What does the IRR rule say about whether the investment should be undertaken? The IRR rule says that you (Select from the drop-down menu.) What is the NPV? The NPV for the investment is $ What does the NPV rule suggest? The NPV rule says that you (Round to the nearest cent.) (Select from the drop-down menu.)

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter16: The Markets For Labor, Capital, And Land

Section: Chapter Questions

Problem 12P

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