Question
ii) You have been offered a unique investment opportunity. If you invest $8,900 today, you will receive $ 445 one year fromnow, $1,335 two years
ii) You have been offered a unique investment opportunity. If you invest $8,900 today, you will receive $ 445 one year fromnow, $1,335 two years fromnow, and $8,900 ten years from now.
a. What is the NPV of the opportunity if the cost of capital is 5.7 % peryear? Should you take theopportunity?
b. What is the NPV of the opportunity if the cost of capital is 1.7 % peryear? Should you take itnow?
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Financial Management Core Concepts
Authors: Raymond M Brooks
3rd edition
133866696, 978-0133866698
