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You have been offered a unique investment opportunity. If you invest $10,000 today, you will receive $500 one year from now, $1,500 two years from
You have been offered a unique investment opportunity. If you invest $10,000 today, you will receive $500 one year from now, $1,500 two years from now, and $10,000 ten years from now.
You have been offered a unique investment opportunity. If you invest $10,000 today, you will receive $500 one year from now, $1,500 two years from now, and $10,000 ten years from now. a. What is the NPV of the investment opportunity if the interest rate is 10% per year? Should you take the opportunity? b. What is the NPV of the investment opportunity if the interest rate is 6% per year? Should you take the opportunity? a. What is the NPV of the investment opportunity if the interest rate is 10% per year? The NPV of the investment opportunity if the interest rate is 10% per year is $ . (Round to the nearest dollar.) Should you take the investment opportunity (Select the best choice below.) O A. Reject it because the NPV is less than 0. OB. Take it because the NPV is equal to or greater than 0. b. What is the NPV of the investment opportunity if the interest rate is 6% per year? The NPV of the investment opportunity if the interest rate is 6% per year is $ . (Round to the nearest dollar.) Should you take the investment opportunity (Select the best choice below.) O A. Reject it because the NPV is less than 0. OB. Take it because the NPV is equal to or greater than 0Step by Step Solution
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