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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 $10,400 today, you will receive $520 one year from now, $1,560 two years from now, and $10,400 ten 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?
You
take this opportunity. (Select from the drop-down menu.)
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?
You
take this opportunity at the new cost of capital. (Select from the drop-down menu.)
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