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You have been offered a unique investment opportunity. If you invest $9,800 today, you will receive $490 one year from now, $1470 two years from

You have been offered a unique investment opportunity. If you invest $9,800 today, you will receive $490 one year from now, $1470 two years from now, and $9,800 ten years from now.

a. What is the NPV of the opportunity if the cost of capital is 5.9% per year? Should you take the opportunity?

b. What is the NPV of the opportunity if the cost of capital is 1.9% per year? Should you take it now?

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