You have been offered a unique investment opportunity. If you invest $8,300 today, you will receive $415 one year from now $1,245 two years from now, and $0.300 en years from now a. What is the NPV of the opportunity if the cost of capital is 6.4% per year? Should you take the opportunity? b. What is the NPV of the opportunity if the cost of capital is 2.4% per year? Should you take it now? a. What is the NPV of the opportunity if the cost of capital is 6.4% per year? If the cost of capital is 6.4% per year, the NPV is 5 (Round to the nearest cant)

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 5PA: Falkland, Inc., is considering the purchase of a patent that has a cost of $50,000 and an estimated...
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You have been offered a unique investment opportunity. If you invest $8,300 today, you will receive $415 one year from now, $1,245 two years from now, and $0,300 ton years from now
a. What is the NPV of the opportunity if the cost of capital is 6.4% per year? Should you take the opportunity
b. What is the NPV of the opportunity if the cost of capital is 2.4% per year? Should you take it now?
a. What is the NPV of the opportunity if the cost of capital is 6.4% per year?
If the cost of capital is 6.4% per year, the NPV is $
(Round to the nearest cent)
Transcribed Image Text:K You have been offered a unique investment opportunity. If you invest $8,300 today, you will receive $415 one year from now, $1,245 two years from now, and $0,300 ton years from now a. What is the NPV of the opportunity if the cost of capital is 6.4% per year? Should you take the opportunity b. What is the NPV of the opportunity if the cost of capital is 2.4% per year? Should you take it now? a. What is the NPV of the opportunity if the cost of capital is 6.4% per year? If the cost of capital is 6.4% per year, the NPV is $ (Round to the nearest cent)
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