You have been offered a unique investment opportunity. If you invest $9,400 today, you will receive $470 one year from now, $1,410 two years from now, and $9,400 ten years from now. a. What is the NPV of the opportunity if the cost of capital is 6.5% per year? Should you take the opportunity? b. What is the NPV of the opportunity if the cost of capital is 2.5% per year? Should you take it now? a. What is the NPV of the opportunity if the cost of capital is 6.5% per year? f the cost of capital is 6.5% per year, the NPV is $. (Round to the nearest cent.)

You have been offered a unique investment opportunity. If you invest $9,400 today, you will receive $470 one year from now, $1,410 two years from now, and $9,400 ten years from now. a. What is the NPV of the opportunity if the cost of capital is 6.5% per year? Should you take the opportunity? b. What is the NPV of the opportunity if the cost of capital is 2.5% per year? Should you take it now? a. What is the NPV of the opportunity if the cost of capital is 6.5% per year? f the cost of capital is 6.5% per year, the NPV is $. (Round to the nearest cent.)

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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