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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 6.9% per​ year? Should you take the​ opportunity? B. What is the NPV of the opportunity if the cost of capital is 2.9% per​ year? Should you take it​ now?

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Hubert Koch
Hubert KochLv2
28 Sep 2019

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