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Business, 20.02.2020 19:30 mari530

You have been offered a unique investment opportunity. If you invest $10,000 today, you will receive $500 one year from now, $1,500 two years from now, and $10,000 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 8% per year? Should you take it now?

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