Question
You have been offered a unique investment opportunity. If you invest $8,800 today, you will receive $440 one year from now, $1,320 two years from
You have been offered a unique investment opportunity. If you invest $8,800 today, you will receive $440 one year from now, $1,320 two years from now, and $8,800 in ten years.
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?
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The Socionomic Theory Of Finance
Authors: Robert R. Prechter
1st Edition
0977611256, 978-0977611256
