You are considering investing in a start-up company. The founder asked you for $200,000 today and

You are considering investing in a start-up company. The founder asked you for $200,000 today and you expect to get $1,000,000 in nine years. Given the riskiness of the investment opportu- nity, your cost of capital is 20%. What is the NPV of the investment opportunity? Should you undertake the investment opportunity? Calculate the IRR and use it to determine the maxi- mum deviation allowable in the cost of capital estimate to leave the decision unchanged.