You have been offered a unique investment opportunity. If you invest $$8,600$ today, you will receive $$430$ one year

from now, $$1,290$ two years from now, and $$8,600$ ten years from now.

a$.$ What is the NPV of the opportunity if the cost of capital is $5\mathrm{.}4\%$ per year? Should you take the opportunity?

b$.$ What is the NPV of the opportunity if the cost of capital is $1\mathrm{.}4\%$ per year? Should you take it now?

a$.$ What is the NPV of the opportunity if the cost of capital is $5\mathrm{.}4\%$ per year?

If the cost of capital is $5\mathrm{.}4\%$ per year, the NPV is $$.($Round to the nearest cent.$)$

Should you take the opportunity? $($Select from the drop$-$down menu.$)$

You

take this opportunity.

b$.$ What is the NPV of the opportunity if the cost of capital is $1\mathrm{.}4\%$ per year?

If the cost of capital is $1\mathrm{.}4\%$ per year, the NPV is $$.($Round to the nearest cent.$)$

Should you take it now? $($Select from the drop$-$down menu.$)$

You

take this opportunity at the new cost of capital.