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You have been offered a unique investment opportunity. If you invest $11,800? today, you will receive $590 one year from? now, $1,770 two years from?

You have been offered a unique investment opportunity. If you invest $11,800? today, you will receive $590 one year from? now, $1,770 two years from? now, and $11,800 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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