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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

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 5.8% per year? Should you take the opportunity ?

b. What is the NPV of the opportunity if the cost of capital is 1.8% per year? Should you take it now?

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