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Part $1$

You have been offered a unique investment opportunity. $If$ you invest $ $25$ comma $000$ today, you will receive $ $1$ comma $250$ one year from now, $ $3$ comma $750$ two years from now, and $ $25$ comma $000$ ten years from now.

$a.$ What $is$ the $NPVof$ the investment opportunity $if$ the interest rate $is8\%$ per year? Should you take the opportunity?

$b.$ What $is$ the $NPVof$ the investment opportunity $if$ the interest rate $is4\%$ per year? Should you take the opportunity?

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Part $1$

$a.$ What $is$ the $NPVof$ the investment opportunity $if$ the interest rate $is8\%$ per year?

The $NPVof$ the investment opportunity $if$ the interest rate $is8\%$ per year $is$ $

$$

enter your response here. $(Roundto$ the nearest cent.$)$

Part $2$

Should you take the investment opportunity? $(Select$ the best choice below.$)$

$A.$Reject $it$ because the $NPVis$ less than $0.$

Reject $it$ because the $NPVis$ less than $0.$

$B.$Take $it$ because the $NPVis$ equal $toor$ greater than $0.$

Take $it$ because the $NPVis$ equal $toor$ greater than $0.$

Part $3$

$b.$ What $is$ the $NPVof$ the investment opportunity $if$ the interest rate $is4\%$ per year?

The $NPVof$ the investment opportunity $if$ the interest rate $is4\%$ per year $is$ $

$$

enter your response here. $(Roundto$ the nearest cent.$)$

Part $4$

Should you take the investment opportunity? $(Select$ the best choice below.$)$

$A.$Reject $it$ because the $NPVis$ less than $0.$

Reject $it$ because the $NPVis$ less than $0.$

$B.$Take $it$ because the $NPVis$ equal $toor$ greater than $0.$

Take $it$ because the $NPVis$ equal $toor$ greater than $0.$