This paper circulates around the core theme of You have been offered a unique investment opportunity. If you invest $10,000 today, you will receive $500 1 year from now, $1,500 2 years from now, and $10,000 10 years from now. a. What is the NPV of the opportunity if the interest rate is 6% per year? together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 99. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.
You have
been offered a unique investment opportunity. If you invest $10,000 today, you
will receive $500 1 year from now, $1,500 2 years from now, and $10,000 10
years from now.
a. What is
the NPV of the opportunity if the interest rate is 6% 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?
