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You have been offered a unique investment opportunity. If you invest $11,800 today, you will receive $590 one year from now, $1,770 two years
You have been offered a unique investment opportunity. If you invest $11,800 today, you will receive $590 one year from now, $1,770 two years from now, and $11,800 ten years from now. a. What is the NPV of the opportunity if the cost of capital is 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% per year? Should you take it now? a. What is the NPV of the opportunity if the cost of capital is 6.1% per year? If the cost of capital is 6.1% 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 2.1% per year? If the cost of capital is 2.1% per year, the NPV is $ (Round to the nearest cent.) Should you take it now? (Select from the drop-down menu.) You take this opportunity at the new cost of capital.
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