You have been offered a unique investment opportunity. If you invest $11,700

today, you will receive $585 one year from now, $1,755 two years from now, and $11,700 ten years from now

.a. What is the NPV of the opportunity if the cost of capital is 6.5% per year? Should you take the opportunity?b. What is the NPV of the opportunity if the cost of capital is 2.5% per year? Should you take it now?

a. What is the NPV of the opportunity if the cost of capital is 6.5% per year?

If the cost of capital is 6.5% per year, the NPV is: $ (Round to the nearest cent.)

Should you take the opportunity?(Select from the drop-down menu.)

You

should not

should

take this opportunity.

b. What is the NPV of the opportunity if the cost of capital is 2.5% per year? If the cost of capital is 2.5% per year, the NPV is: $ (Round to the nearest cent.)

Should you take it now?(Select from the drop-down menu.)

You

should not

should

take this opportunity at the new cost of capital.