P4-14 (similar to)

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You have been offered a unique investment opportunity. If you invest

$ 25 comma 000$25,000

today, you will receive

$ 1 comma 250$1,250

one year from now,

$ 3 comma 750$3,750

two years from now, and

$ 25 comma 000$25,000

ten years from now.a. What is the NPV of the investment opportunity if the interest rate is

6 %6%

per year? Should you take the opportunity?b. What is the NPV of the investment opportunity if the interest rate is

2 %2%

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

6 %6%

per year?The NPV of the investment opportunity if the interest rate is

6 %6%

per year is

$nothing.

(Round to the nearest dollar.)