You have been offered a unique investment opportunity. If you invest $11,500 today, you will receive $575 one year from now, $1,725 two years from now, and $11,500 ten years from now.

a. What is the NPV of the opportunity if the cost of capital is 5.6% per year? Should you take the opportunity?

b. What is the NPV of the opportunity if the cost of capital is 1.6% per year? Should you take it now?