NPV of the Opportunity Assignment

You have been offered a unique investment opportunity. If you invest $ 11 600 today, you will receive $ 580 one year from now, $ 1 740 two years from now, and $ 11 600 ten years from now.

a. What is the NPV of the opportunity if the cost of capital is 6.1 % per year? Should you take the opportunity?

b. What is the NPV of the opportunity if the cost of capital is 2.1 % per year? Should you take it now?Get Finance homework help today