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You have been offered an investment opportunity.if you invest $11,600 today you will get $580 in one year, $1,740 in 2 years, and $ 11,600

You have been offered an investment opportunity.if you invest $11,600 today you will get $580 in one year, $1,740 in 2 years, and $ 11,600 10 years from now.

A. what is the NPV of the opportunity if the cost of capital is 5.8% per year? should you take the opportunity?

B. What is the NPV of the opportunity if the cost of capital is 1.8% per year? Should you take it now?

C. You have another opportunity to invest $100,000 now in return for $80,000 in one year and $30,000 in 2 years. If your cost of capital is 9.0%, what is the NPV of this investment?

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