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You have been offered a unique investment opportunity. If you invest $448,700 today, you will receive $58,331 3 years from now, $408,317 8 years from
You have been offered a unique investment opportunity. If you invest $448,700 today, you will receive $58,331 3 years from now, $408,317 8 years from now, and $51,527 17 years from now. a. What is the NPV of the opportunity if the cost of capital is 5.7% per year? Should you take the opportunity? b. What is the NPV of the opportunity if the cost of capital is 1.7% per year? Should you take it now? a. What is the NPV of the opportunity if the cost of capital is 5.7% per year? If the cost of capital is 5.7% 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 1.7% per year? If the cost of capital is 1.7% 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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