You have been offered a unique investment opportunity. If you invest $15,000 today, you will receive $750

Question:

You have been offered a unique investment opportunity. If you invest $15,000 today, you will receive $750 one year from now, $2250 two years from now, and $15,000 ten years from now.

a. What is the NPV of the opportunity if the interest rate is 12% per year? Should you take the opportunity?

b. What is the NPV of the opportunity if the interest rate is 8% per year? Should you take it now?

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