Posted: April 22nd, 2017

You have been offered a unique investment opportunity. If you invest $10,000 today, you will receive $500 1 year from now, $1,500 2 years from now, and $10,000 10 years from now

You have been offered a unique investment opportunity. If you invest ,000 today, you will receive 0 1 year from now, $1,500 2 years from now, and $10,000 10 years from now. a. What is the NPV of the opportunity if the interest rate is 6% per year? Should you take the opportunity? b. What is the NPV of the opportunity if the interest rate is 2% per year? Should you take it now?