Question

You have been offered a unique investment opportunity. If you invest $20,000 today, you will receive $1000 one year from now, $3000 two years from now, and $20,000 ten years from now. • a. What is the NPV of the opportunity if the interest rate is 12% 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?

Answer 1

Answer:

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