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

5.7%

per year? Should you take the opportunity?

b. What is the NPV of the opportunity if the cost of capital is

1.7%

per year? Should you take it now?