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You have been offered a unique investment opportunity. If you invest $10,800 today, you will receive $540 one year from now, $1.620 two years
You have been offered a unique investment opportunity. If you invest $10,800 today, you will receive $540 one year from now, $1.620 two years from now, and $10,800 ten years from now. a. What is the NPV of the opportunity if the cost of capital is 5.2% per year? Should you take the opportunity? b. What is the NPV of the opportunity if the cost of capital is 1.2% per year? Should you take it now? a. What is the NPV of the opportunity if the cost of capital is 5.2% per year? If the cost of capital is 5.2% per year, the NPV is $ (Round to the nearest cent.)
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