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1. You have been offered a unique investment opportunity. If you invest $10,000 today, you will receive $500 one year from now, $1,500 two years

1.You have been offered a unique investment opportunity. If you invest $10,000 today, you will receive $500 one year from now, $1,500 two years from now, and $10,000 ten years from now. What is the NPV of the investment opportunity if the discount rate is 6% per year? Should you take the investment opportunity? 2.Avicorp has a $10 million debt issue outstanding, with a 6% coupon rate. The debt has semi-annual coupons, the next coupon is due in 6 months, and the debt matures on 5 years. It is currently prices at 95% of its $1,000 face value. What is Avicorps cost of debt?

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