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You have been offered a unique investment opportunity. If you invest $ 1 2 , 0 0 0 today , you will receive $ 7

You have been offered a unique investment opportunity. If you invest $12,000today, you will receive $7001 year from now, $1,4002 years from now, and $12,00010 years from now.
a. What is the NPV of the investment opportunity if the interest rate is 8% per year? Should you take the opportunity?
b. What is the NPV of the investment opportunity if the interest rate is 2% per year? Should you take the opportunity?
1. What is the NPV of the investment opportunity if the interest rate is 10% per year?
The NPV of the investment opportunity if the interest rate is10% per year is $ _____(Round to the nearest cent.)
2. Should you take the investment opportunity? (Select the best choice below.)
a.Reject it because the NPV is less than 0.
b.Take it because the NPV is equal to or greater than 0.
3. What is the NPV of the investment opportunity if the interest rate is 2% per year?
The NPV of the investment opportunity if the interest rate is 2% per year is $ _____.(Round to the nearest cent.)
4.Should you take the investment opportunity? (Select the best choice below.)
a.Reject it because the NPV is less than 0.
b.Take it because the NPV is equal to or greater than 0.

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