# IRR and NPV

In the â??Basic Venture Economicsâ? example, what would be the entrepreneurâ??s IRR if the investor was given 10% of the firm in exchange for the $250 investment? What would be the investor's IRR? If you were the investor, would you make the investment?

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Entrepreneur and investor agree to a 10% discount rate

Investor receives a 10% ownership interest

Investor: Claim on ...

#### Solution Summary

This post shows how to calculate IRR and NPV.

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