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

5.8 % per? year? Should you take the? opportunity?

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

1.8 %1.8%

per? year? Should you take it? now?