Question
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
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.
a) What is the NPV of the opportunity if the interest rate is 12% per year? Should you take the opportunity?
b) What is the NPV of the opportunity if the interest rate is 8% per year? Should you take it now?
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International Finance For Dummies
Authors: Ayse Evrensel
1st Edition
111852389X, 978-1118523896
