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You have been offered a unique investment opportunity. If you invest $8700 today, you will receive $435 one year from now, $1 305 two years
You have been offered a unique investment opportunity. If you invest $8700 today, you will receive $435 one year from now, \$1 305 two years from now, and \$8 700 ten years from now. a. What is the NPV of the opportunity if the cost of capital is 5.6% per year? Should you take the opportunity? b. What is the NPV of the opportunity if the cost of capital is 1.6% per year? Should you take it now? a. If the cost of capital is 5.6% per year, the NPV is $ (Round to the nearest cent.) You take this opportunity. (Select from the drop-down menu.) b. If the cost of capital is 1.6% per year, the NPV is $. (Round to the nearest cent.) You take this opportunity at the new cost of capital. (Select from the drop-down menu.)
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