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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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