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You have been offered a unique investment opportunity. If you invest $ 11 comma 500$11,500 ?today, you will receive $ 575$575 one year from? now,
You have been offered a unique investment opportunity. If you invest $ 11 comma 500$11,500 ?today, you will receive $ 575$575 one year from? now, $ 1 comma 725$1,725 two years from? now, and $ 11 comma 500$11,500 ten years from now. a. What is the NPV of the opportunity if the cost of capital is 6.2 %6.2% per? year? Should you take the? opportunity? b. What is the NPV of the opportunity if the cost of capital is 2.2 %2.2% per? year? Should you take it? now?
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