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You have been offered a unique investment opportunity. If you invest $ 1 0 , 8 0 0 today, you will receive $ 5 4

You have been offered a unique investment opportunity. If you invest $10,800 today, you will receive $540
one year from now, $1,620 two years from now, and $10,800 ten years from now.
a. What is the NPV of the opportunity if the cost of capital is 6.3% per year? Should you take
the opportunity?
b. What is the NPV of the opportunity if the cost of capital is 2.3% per year? Should you take it now?
a. What is the NPV of the opportunity if the cost of capital is 6.3% per year?
If the cost of capital is 6.3% per year, the NPV is $
(Round to the nearest cent.)
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