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You have been offered a unique investment opportunity. If you invest $8,400 today, you will receive $420 one year from now, $1,260 two years from
You have been offered a unique investment opportunity. If you invest $8,400 today, you will receive $420 one year from now, $1,260 two years from now, and $8,400 ten years from now. a. What is the NPV of the opportunity if the cost of capital is 5.4% per year? Should you take the opportunity? b. What is the NPV of the opportunity if the cost of capital is 1.4% per year? Should you take it now? a. What is the NPV of the opportunity if the cost of capital is 5.4% per year? If the cost of capital is 5.4% per year, the NPV is $. (Round to the nearest cent.) Should you take the opportunity? (Select from the drop-down menu.) You take this opportunity. b. What is the NPV of the opportunity if the cost of capital is 1.4% per year? If the cost of capital is 1.4% per year, the NPV is \$ . (Round to the nearest cent.)
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