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You can invest in a project with returns that depend on the

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you can invest in a project with returns that depend on the amount of your investment. Specifically, the formula relating next year's payoff to your investment today is C1=(-C0 -0.1)^(1/2), c1 c2 are in million dollars. The prevailing interest rate is 6% per annum. Use a spreadsheet to answer what is the IRR-maximizing investment choice of C0?

Reference no: EM13378826

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