You have been offered a unique investment opportunity. If you invest

$11,400

today, you will receive

$570

one year from now,

$1,710

two years from now, and

$11,400

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

$nothing.

(Round to the nearest cent.)

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

You

should

should not

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

$nothing.

(Round to the nearest cent.)

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

You

should

should not

take this opportunity at the new cost of capital.