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You have been offered a unique investment opportunity. If you invest $ 8 comma 900$8,900 today, you will receive $ 445$445 one year from now,
You have been offered a unique investment opportunity. If you invest
$ 8 comma 900$8,900
today, you will receive
$ 445$445
one year from now,
$ 1 comma 335$1,335
two years from now, and
$ 8 comma 900$8,900
ten years from now.a. What is the NPV of the opportunity if the cost of capital is
6.1 %6.1%
per year? Should you take the opportunity?b. What is the NPV of the opportunity if the cost of capital is
2.1 %2.1%
per year? Should you take it now?
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