You have been offered a unique investment opportunity. If you invest ($15,000) today, you will receive ($750)
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You have been offered a unique investment opportunity. If you invest \($15,000\) today, you will receive \($750\) one year from now, \($2250\) two years from now, and \($15,000\) ten years from now.
a. What is the NPV of the opportunity if the interest rate is 12% per year? Should you take the opportunity?
b. What is the NPV of the opportunity if the interest rate is 8% per year? Should you take it now?
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