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You have been offered a unique investment opportunity. If you invest $8,500 today, you will receive $425 one year from now, $1,275 two years from
You have been offered a unique investment opportunity. If you invest $8,500 today, you will receive $425 one year from now, $1,275 two years from now, and $8,500 ten years from now. a. What is the NPV of the opportunity if the cost of capital is 5.8% per year? Should you take the opportunity? b. What is the NPV of the opportunity if the cost of capital is 1.8% per year? Should you take it now? a. What is the NPV of the opportunity if the cost of capital is 5.8% per year? If the cost of capital is 5.8% per year, the NPV is S (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 1.8% per year? If the cost of capital is 1.8% 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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