You have been offered a unique investment opportunity. If you invest

$10,300 today, you will receive

$515 one year from now,

$1,545 two years from now, and

$10,300 ten years from now.

a. What is the NPV of the opportunity if the cost of capital is

5.1% per year? Should you take theopportunity?

b. What is the NPV of the opportunity if the cost of capital is

1.1% per year? Should you take it now?