Alpha Geek

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    Polytechnic State University Sanluis
    Jan-2006 - Nov-2010

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    Polytechnic State University
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Category > Accounting Posted 17 May 2017 My Price 7.00

You have been offered a unique investment opportunity.

 

You have been offered a unique investment opportunity. If you invest $10,000 today, you will receive $500 one year from now, $1500 two years from now, and $10,000 ten 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?

 

 
 

Answers

Alpha Geek
(8)
Status NEW Posted 17 May 2017 10:05 AM My Price 7.00

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Attachments

file 1495015855-1414038_1_636305190013196114_present-value-opprtunity.xlsx preview (169 words )
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