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You have been offered a unique investment opportunity. If you invest $25,000 today, you will receive $1,250 one year from? now, $3,750 two years from? now, and $25,000 ten years from now.

a. What is the NPV of the investment opportunity if the interest rate is 6% per? year? Should you take the? opportunity?

b. What is the NPV of the investment opportunity if the interest rate is 2% per? year? Should you take the? opportunity?

a. What is the NPV of the investment opportunity if the interest rate is 6% per? year?  

The NPV of the investment opportunity if the interest rate is 6% per year is $ ------------. (Round to the nearest? dollar.)

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92827768

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