You have been offered a unique investment opportunity. If you invest $9,800 today, you will receive...

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You have been offered a unique investment opportunity. If you invest $9,800 today, you will receive $490 one year from now, $1,470 two years from now, and $9,800 ten years from now. a. What is the NPV of the opportunity if the cost of capital is 5.9% per year? Should you take the opportunity? b. What is the NPV of the opportunity if the cost of capital is 1.9% per year? Should you take it now? a. What is the NPV of the opportunity if the cost of capital is 5.9% per year? If the cost of capital is 5.9% per year, the NPV is $ (Round to the nearest cent.) You have been offered a unique investment opportunity. If you invest $9,800 today, you will receive $490 one year from now, $1,470 two years from now, and $9,800 ten years from now. a. What is the NPV of the opportunity if the cost of capital is 5.9% per year? Should you take the opportunity? b. What is the NPV of the opportunity if the cost of capital is 1.9% per year? Should you take it now? a. What is the NPV of the opportunity if the cost of capital is 5.9% per year? If the cost of capital is 5.9% per year, the NPV is $ (Round to the nearest cent.)

Answer rating: 100% (QA)

Initail investment at year 0 9800 You will rreceive 490 in year 1 1... View the full answer