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You have been offered a unique investment opportunity. If you invest $10,000 today, you will receive $500 one year from now, $1,500 two years from

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You have been offered a unique investment opportunity. If you invest $10,000 today, you will receive $500 one year from now, $1,500 two years from now, and $10,000 ten years from now. Complete the steps below using cell references to given data or previous calculations. In some cases, a simple cell reference is all you need. To copy/paste a formula across a row or down a column, an absolute cell reference or a mixed cell reference may be preferred. If a specific Excel function is to be used, the directions will specify the use of that function. Do not type in numerical data into a cell or function. Instead, make a reference to the cell in which the data is found. Make your computations only in the blue cells highlighted below. In all cases, unless otherwise directed, use the earliest appearance of the data in your formulas, usually the Given Data section. a. What is the NPV of the opportunity if the cost of capital is 6% per year? Should you take the opportunity? b. What is the NPV of the opportunity if the cost of capital is 2% per year? Should you take it now? Initial investment Cash flow year 1 Cash flow year 2 Cash flow year 10 $ $ $ $ 10,000 500 1,500 10,000 a. What is the NPV of the opportunity if the cost of capital is 6% per year? Should you take the opportunity? Cost of capital 6% ME NPV Take opportunity (Yes/No) b. What is the NPV of the opportunity if the cost of capital is 2% per year? Should you take it now? Cost of capital 2% NPV Take opportunity (Yes/No) Requirements In cell D17, by using cell references, write an expression to calculate the NPV of the investment 1 opportunity (1 pt.). 2 In cell D18, type Yes or No depending on whether you would take the opportunity or not (I pt.). In cell D24, by using cell references, write an expression to calculate the NPV of the investment 3 opportunity (1 pt.). 4 In cell D25, type Yes or No depending on whether you would take the opportunity or not (1 pt.)

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