You have been offered a unique investment opportunity. If you invest $10,000 today, you will receive $500

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You have been offered a unique investment opportunity. If you invest $10,000 today, you will receive $500 one year from now, $1500 two years from now, and $10,000 ten years from now.

A.What is the NPV of the opportunity if the cost of capital is 6% per year? Should you take the opportunity?

B.What is the NPV of the opportunity if the cost of capital is 2% per year? Should you take it now?

Posted Date: May 18, 2024 10:13 AM

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You have been offered a unique investment opportunity. If you invest $10,000 today, you will receive $500

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