Question
You have been offered a unique investment opportunity. If you invest $ 8 comma 900 today, you will receive $ 445 one year from now,
You have been offered a unique investment opportunity. If you invest $ 8 comma 900 today, you will receive $ 445 one year from now, $ 1 comma 335 two years from now, and $ 8 comma 900 ten years from now. a. What is the NPV of the opportunity if the cost of capital is 6.3 % per year? Should you take the opportunity? b. What is the NPV of the opportunity if the cost of capital is 2.3 % per year? Should you take it now? a. What is the NPV of the opportunity if the cost of capital is 6.3 % per year? If the cost of capital is 6.3 % per year, the NPV is $ nothing. (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 2.3 % per year? If the cost of capital is 2.3 % per year, the NPV is $ nothing. (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.
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