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 10% per year? Should you take the opportunity?

b. What is the NPV of the investment opportunity if the interest rate is 6%per year? Should you take the opportunity?