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You have been offered a unique investment opportunity. If you invest $11,300 today, you will receive $565 one year from now, $1,695 two years from
You have been offered a unique investment opportunity. If you invest $11,300 today, you will receive $565 one year from now, $1,695 two years from now, and $11,300 ten years from now. a. What is the NPV of the opportunity if the cost of capital is 51% per year? Should you take the opportunity? b. What is the NPV of the opportunity if the cost of capital is 1.1% per year? Should you take it now? a. What is the NPV of the opportunity if the cost of capital is 51% per year? If the cost of capital is 5.1% per year, the NPV is 0 (Round to the nearest cent.) Should you take the opportunity? (Select from the drop-down menu.) You b. What is the NPV of the opportunity if the cost of capital is 1.1% per year? take this opportunity. If the cost of capital is 1.1% per year, the NPV is 0 (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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