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You have been offered a unique investment opportunity. If you invest $ 11,00 today, you will receive $ 555 one year from now, $ 1,665
You have been offered a unique investment opportunity. If you invest $ 11,00 today, you will receive $ 555 one year from now, $ 1,665 two years from now, and $ 11,100 in ten years. a. What is the NPV of the opportunity if the cost of capital is 6.5 % per year? Should you take the opportunity?
b. What is the NPV of the opportunity if the cost of capital is 2.5 % per year? Should you take it now
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