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You have been offered a unique investment opportunity. If you invest $ 11,00 ​today, you will...

You have been offered a unique investment opportunity. If you invest $ 11,00 ​today, you will receive $ 555 one year from​ now, $ 1,665 two years from​ now, and $ 11,100 in ten years. 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

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Answer #1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

I HOPE, INVESTMENT = 11000 ONLY. BY MISTAKE "0" IS NOT WRITTEN.

IF IT IS SOME OTHER FIGURE, LET ME KNOW, WILL DO SUM AGAIN 1 e W ? v 1* 01:04 ENG 12-02-2020 17 T148 RS T U V W Y Z 148 149 150 151 NPV AT 6.5% 152 153 154 NPV = NPV = NPV = NPV = PV O

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