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You have been offered a unique investment opportunity. If you invest $ 25,000 today, you will receive $ 1,250 one year from now, $ 3,750
You have been offered a unique investment opportunity. If you invest $ 25,000 today, you will receive $ 1,250 one year from now, $ 3,750 two years from now, and $ 25,000 ten 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 4 % per year? Should you take the opportunity?
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