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You have been offered a unique investment opportunity. If you invest $9,700 today, you will receive $485 one year from now, $1,455 two years from

You have been offered a unique investment opportunity. If you invest

$9,700

today, you will receive

$485

one year from now,

$1,455

two years from now, and

$9,700

ten years from now.a. What is the NPV of the opportunity if the cost of capital is

5.1%

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

1.1%

per year? Should you take it now?

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