Problemyou have been offered a unique investment, Ask an Expert

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Problem

You have been offered a unique investment opportunity. If you invest 58.900 today, you will receive $445 one year from now. $1, 335 two years from now. and $8, 900 ten years from now.

What is the NPV of the opportunity if the cost of capital is 6 8% per year's Should you take the opportunity?

What is the NPV of the opportunity if the cost of capital is 2.8% per year? Should you take it now?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M92770438

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