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You have been offered a unique investment opportunity. If you invest $ 1 0 , 4 0 0 today, you will receive $ 5 2
You have been offered a unique investment opportunity. If you invest $ today, you will receive $ one year from now, $ two years from now, and $ ten years from now.
a What is the NPV of the opportunity if the cost of capital is per year? Should you take the opportunity?
b What is the NPV of the opportunity if the cost of capital is per year? Should you take it now?
a What is the NPV of the opportunity if the cost of capital is per year?
If the cost of capital is per year, the NPV is $
Round to the nearest cent.
Should you take the opportunity?
You
take this opportunity. Select from the dropdown menu.
b What is the NPV of the opportunity if the cost of capital is per year?
If the cost of capital is per year, the NPV is $
Round to the nearest cent.
Should you take it now?
You
take this opportunity at the new cost of capital. Select from the dropdown menu.
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